Basel II and IAS (International Accounting Standard): the “new double entry” for banks and business
Participants discussed risks and opportunities springing from the new international accounting standards. They considered, in particular, consequences on budgets, net assets, and aggregation processes. They also reflected on difficulties the new system will cause for businesses and how businesspeople are preparing. The conference ended with a discussion of the new relationship between banks and businesses that the Basel 2 Accord will soon create, and of how the Accord’s credit risk innovations will condition that relationship.