Global banks have demonstrated an
increase in fair value disclosures and in the range and depth of
structured financial disclosures since the onset of the credit
crunch, according to a report from PricewaterhouseCoopers (PwC)
Global.

Accounting for Change: Transparency in the Midst of
Turmoil
reviewed bank disclosure requirements for the three
areas most affected by market events: fair value, structured
finance and risk management. It also benchmarked current findings
against the corresponding 2006 report.

The report suggested that although banks have expanded their
disclosures in areas most impacted by the credit crunch, the
increase has not achieved the level of transparency that report
users are demanding.

The report also suggested the implementation of IFRS 7 –
Financial Instruments: Disclosures and the US fair value
measurement standard, combined with the fallout from the market
turmoil, had a positive impact on the nature and extent of fair
value disclosures. However, IFRS 7 did not improve the transparency
of risk management disclosures.