Oireachtas Joint and Select Committees
Wednesday, 9 September 2015
Committee of Inquiry into the Banking Crisis
Nexus Phase
Mr. Denis O'Connor:
Well, the main point is that the auditor looks backwards. He can only make a provision if a condition exists at the balance sheet date. Sorry, the company can make a provision if the condition exists on the balance sheet date, the auditor will report on that. If a company had provided for losses that were going to happen in two or three years' time the auditor would not allow that to go through. So that is the issue more than anything else.
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