3 Amendments of Sven GIEGOLD related to 2013/2021(INI)
Amendment 27 #
Motion for a resolution
Recital C a (new)
Recital C a (new)
Ca. whereas the loss of prudence in accounting standards as a consequence of the adoption of international financial reporting standards played and continues to play a central role in allowing banks to give a view of their accounts that was and is not always true and fair with particular reference to IAS 39 on loan loss provisioning;
Amendment 167 #
Motion for a resolution
Paragraph 5 a (new)
Paragraph 5 a (new)
5a. Notes that the HLEG did not look at the issue of accounting standards and their role in financial crisis in sufficient depth; notes that European company law requires that accounts must be true and fair in order for directors of a company to discharge their liabilities to creditors and shareholders of companies; suggests that as a consequence of international financial reporting standards being overly complex and being principally about providing information to the share trading part of capital markets, these standards did and do not give a true and fair view of banks' accounts; notes that despite commitments from the IASB to update IAS 39 on loan loss provisioning from an incurred to expected loss model, its adoption has been delayed due to concerns expressed by FASB that the revised IASB model is still not a lifetime expected loss model; notes that although moving to an expected loss model recognises the problems caused by IAS 39 during the crisis, the added complexity may well create problems of their own; argues that, therefore, structural reform must include a thorough assessment of what role accounts should play in driving better governance of banks;
Amendment 449 #
Motion for a resolution
Paragraph 27 a (new)
Paragraph 27 a (new)
27a. Urges the Commission to conduct a study to ensure that accounting standards used by financial institutions give a genuinely true and fair view of banks' financial health; points out that accounts are the main source of information for an investor to understand whether or not a company is a going concern or not; notes that auditors can only sign off accounts if they are true and fair, independent of the financial standards used by preparers of financial statements; believes that if auditors are unsure that a company is a going concern they should not sign off the company's accounts, even if they have been drawn up in line with accounting standards; this should however be a driver of better management of the company in question; suggests that international financial reporting standards do not necessarily give a true and fair view of accounts, as shown by numerous examples of banks collapsing despite their accounts having been signed off by auditors;