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Banks: Debts

Volume 467: debated on Tuesday 13 November 2007

To ask the Chancellor of the Exchequer what additional measures he has put in place to ensure full disclosure of bad debts in the (a) retail and (b) wholesale banking sector in the last 12 months. (162035)

Disclosures by companies are governed by accounting standards. Compliance with the relevant accounting standards (for example, those promulgated by the Accounting Standards Board or the International Accounting Standards Board) is needed if a company’s accounts are to provide the required true and fair view. International Financial Reporting Standard 7 was brought into UK GAAP as Financial Reporting Standard 29 in 2007. This does not specifically cover bad debts but it requires disclosure of the significance of financial instruments for an entity’s financial position and financial performance, plus quantitative and qualitative information about exposure to risks arising from financial instruments.