One of the difficulties in building out a financial stability analysis is the absence of an upper bound point of reference. There is no statutory basis for identifying a certain systemic footprint above which the risks to financial stability are not worth bearing compared to whatever possible benefits may be associated with the operation of the largest, most interconnected firms.
Accounting standard setters, regulators, and policymakers around the world are discussing and proposing preventative measures. Now the challenge lies in integrating those changes smoothly and seamlessly. Accounting issues identified during the crisis A number of groups have analyzed the role that accounting played during the crisis and have made recommendations to strengthen accounting standards and the standard-setting process.