Oireachtas Joint and Select Committees
Wednesday, 20 May 2015
Committee of Inquiry into the Banking Crisis
Nexus Phase
Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source
-----and I'll use a ... just an example from my own head. If an institution provided a loan for €500 million to an individual to do X, Y or Z, and on the day that you went into the audit you believed that that lending was, maybe, inappropriate, the assets weren't there to secure it, so on and so forth, and the market value - the fair value, which is the value to be reached with ... between two parties that aren't connected in the free open market - was half of that, is the accounting standard that I mentioned, IAS 39, paragraph 43 - which requires you not to recognise that loan in an incurred loss basis but actually on a fair market basis, which means that you would have to have that loan written down to €250 million instead of what was the book value of €500 million - would that be a fair assessment of what you would be required to do?
No comments