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2  BIS Review 14/2003  I particularly welcome the efforts of Sir David Tweedie and his colleagues at IASB in addressing so openly the hugely difficult task of getting the right balance and right principles into place. Many of us can see I think that the financial instruments standards IAS 32 and 39 have provoked significant and strong views. Wisdom, foresight and a certain forbearance will be needed if we are to achieve a good solution. So we should all welcome the present initiative of the IASB in holding a series of roundtables with respondents to their exposure drafts on revisions to IAS 32 and 39. Debate and efforts in relation to these particular standards seem to me to be vital. They get to the heart of the dilemmas and challenges presented by new financial techniques and often complex instruments. It has after all been shown, in the Enron case if no others, that detailed and prescriptive accounting standards, in the wrong hands, can engender a moral hazard in the search for ways round them which investment bankers and lawyers may well be expected to find. A similar logic applies in the prolonged debate between historic and mark-to-market accounting principles. Once again, whichever approach is used, neither of them will tell the whole story in terms of the underlying economic realities of a bank's risk and return, nor how the risks are managed. But forms of disclosure may help.