Accounting standards vs. prudential standards: what risk assessment?

Is it consistent that the assessment of a bank’s financial performance and risks can vary depending on the framework used? The basis of accounting and prudential standards is identical, namely to provide quality information to the market and the supervisor. Nevertheless, it is clear that certain methods or principles diverge.

The sustained normative activity of the IFRS international accounting rules and the challenges linked to the Basel 3 and Solvency 2 regulatory changes raise the question of a fair assessment of risks and the consistency of the definition of assets and liabilities.

In this context, what recording and valuation principles should be adopted?

Among these, the treatment of financial instruments, the valuation of non-performing loans or consolidation methods may require an adjustment of the prudential framework or accounting rules, with potentially significant impacts on the volatility of the balance sheet, the result, the equity and governance issues.

KPMG, the ACPR, BPCE and Moody’s will discuss this risk-accounting-compliance triptych and analyse the operational impacts for financial institutions.

Target audience:

• Finance and accounting departments
• Risk management
• Asset and liability management, ALM
• Auditors and analysts
• Lawyers and advisors
• Academics

More information and REGISTRATION (event in French)

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