For instance, we do not allow the recognition of unrealized gains in investment portfolios while requiring that unrealized losses be provided for. Similarly, we require banks to provide for standard assets even where there are no signs of impairment. While these have served us well, as our financial system develops we may have to harmonise our guidelines with international requirements. 41.
At their summit in London in 2009, the G 20 leaders called on “the accounting standard setters to work urgently with supervisors and regulators to improve standards on valuation and provisioning and achieve a single set of high-quality global accounting standards”. The International Accounting Standards Board (IASB) has now replaced IAS 39 with IFRS 9 with a view to reduce complexity and improve convergence.