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Clear disclosures were needed from banks to allow investors to make up their own minds about the risk of future losses that might be masked by forbearance, Steven Maijoor, chair of the ESMA, said. Mr Maijoor was speaking as ESMA unveiled a list of issues that it, national securities regulators and other accounting watchdogs will be focusing on when they review the 2012 financial statements that will be soon produced by many companies.
The regulator is taking an increasingly assertive role in trying to harmonise European accounting in the wake of damaging inconsistency in the valuation of Greek sovereign debt last year. It said the list of priorities – the first to be agreed across the EU – included checks on the adequacy of disclosures related to financial instruments, such as sovereign debt, and yields used in the calculation of defined benefit pension scheme liabilities.
Mr Maijoor also said he was “personally disappointed” by the US's reluctance to adopt the international accounting rules followed not only in the EU but also in Canada, Brazil, Korea, Australia and other countries, claiming it showed a “lack of ambition”.
US influence over the IASB, which sets IFRS, now needed to be reduced, Mr Maijoor said, echoing concern expressed by EC last month.