1 Amendments of Syed KAMALL related to 2013/2175(INI)
Amendment 130 #
Motion for a resolution
Paragraph 26
Paragraph 26
26. Believes that sound fair value accounting principles for institutional investors can enhance the transparency and consistency of financial information; stresses that those principles should avoid creating incentives for pro-cyclical strategies; notes the on-going debate in the EU and elsewhere, including Japan, around the use of fair value accounting, particularly mark-to-market and mark-to- model, and its role in exacerbating market instability as a consequence of its inherent pro-cyclicality; urges the International Accounting Standards Board and other relevant stakeholders to complete its project updating IAS 39 on loan-loss provisioning, but also questions whether current exposure drafts tackle the deeper problems associated with the 'capital markets' approach to accounting; urges the International Accounting Standards Board to recognise the central importance of prudence in the revision of its Conceptual Framework; notes ESMA's recent conclusions that EU bank accounts completed in accordance with IFRS are opaque and not comparable, in spite of these being two core reasons for shifting from national GAAPs to IFRS to enhance the Single Market; calls on the Commission to thoroughly investigate the role international financial reporting standards have had and continue to have not only on the transparency and comparability of banks' balance sheets, but also on their impact on management behaviour and corporate governance in banks and other financial institutions;