CEBS consults on bank disclosures
11 Oct 2009
The Committee of European Banking Supervisors (CEBS) has published a consultation paper proposing disclosure guidelines intended to help financial institutions improve their risk disclosures in the wake of the financial crisis.
- general principles to be applied to high quality disclosures
- principles dealing with the content of disclosures on areas or activities under stress, in particular business models, impacts on results and risk exposures, impacts on financial positions, risk management, and sensitive accounting issues
- guidance on presentational aspects of disclosures
11. Financial institutions should be as specific as possible with regard to sensitive accounting issues. Disclosures should cover:
Especially in a period of turbulence, when market confidence may be faltering, clear information on the management judgements affecting accounting figures is of the utmost importance since these can significantly affect the amounts recognised in the financial statements. For instance, judgement is called upon for fair values for financial instruments (especially when marking to model), impairment of financial and intangible assets and defined benefit pension schemes.