Mick Wallace (Wexford, Independent)
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175. To ask the Minister for Finance his views on claims by the chartered accountants regulatory board, who have stated that accounting standard IAS 39 forces banks to portray an inaccurate financial position; his further views that his assurances, provided in reply to Parliamentary Question No. 185 of 18 February 2014, that banks have not systemically overvalued loans in their published accounts could be misleading; and if he will make a statement on the matter. [6178/16]

Michael Noonan (Limerick City, Fine Gael)
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I have answered a number of Parliamentary Questions in the past in relation to rules adopted by banks when valuing assets including loans. These rules are determined by the relevant accounting standards and it is the responsibility of the directors of the respective banks to ensure these rules have been properly applied. To provide assurance that this is the case, the proper application of the rules is subject to an annual independent external audit review.

As I have stated in the past, nothing has been brought to my attention to suggest that these rules have not been correctly applied by the banks.

Finally, the requirement for banks to prepare financial statements is laid out in the Companies Acts. The Companies Acts come under the scope of the Department for Enterprise, Trade and Innovation. The Director of Corporate Enforcement has widespread powers and functions in relation to potential breaches of the Companies Acts.