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Daily Insurance Industry News
Thursday 22nd of February 2018
July 28, 2009

Financial Crisis Advisory Group publishes accountancy recommendations

by Gill Montia

Story link: Financial Crisis Advisory Group publishes accountancy recommendations

The Financial Crisis Advisory Group (FCAG) has published its recommendations regarding accounting standard-setting and other changes to the international regulatory environment that should follow the global financial crisis.

The FCAG was formed at the beginning of the year at the request of the International Accounting Standards Board and the US Financial Accounting Standards Board, to consider financial reporting issues arising from the crisis.

It is co-chaired by Hans Hoogervorst, chairman of the Netherlands Authority for the Financial Markets, and Harvey Goldschmid, former commissioner of the US Securities and Exchange Commission.

The report asserts that while accounting was not a root cause of the financial crisis, it has an important role to play in its resolution.

It highlights the importance of broadly accepted accounting standards and the importance, but also the limits, of financial reporting.

According to co-chairman, Harvey Goldschmid: “Improved financial reporting will help restore the confidence of financial market participants and thereby serve as a catalyst for increased financial stability and sound economic growth.”

The Association of British Insurers (ABI) has responded to the study by acknowledging that the financial crisis “has emphasised the need for high-quality financial reporting”.

ABI director general, Stephen Haddrill, said: “The FCAG’s ideas will help … to further improve the usefulness and accuracy of financial reports – which can only benefit a global recovery.”

 

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