While these disclosures could be made mandatory through the Accounting Standards – on which, I understand, ICAI is working – it would be desirable if the corporates adopt such disclosures voluntarily, sooner than later, in their own as well as the system’s interest. It is useful for the bankers to track the changing dynamics of the pattern of corporate financing.
Suddenly, everyone, everywhere, felt much more risk averse – understandably so, as they watched governments have to save major financial institutions in a number of countries. This affected consumption and saving decisions, firms’ investment plans, hiring intentions and so on. But equally remarkable was the simultaneity of the policy responses.