SAFE Policy Lecture: Andreas Barckow
Title: Accounting and Financial Stability: Flying Blind?
Speaker: Andreas Barckow (President of the Accounting Standards Committee of Germany - DRSC)
Moderator: Günther Gebhardt (Emeritus Chair of Accounting and Auditing, Goethe University Frankfurt)
The International Accounting Standards Board’s (IASB’s) new standard on financial instruments, IFRS 9, will become effective 1 January 2018. Whilst the project was originally aimed at reducing complexity in the accounting for financial instruments (and the current standard, IAS 39, in particular), its objective was soon changed due to the financial crisis that followed the demise of Lehman Brothers. Policy-makers were quick to blame the accounting for having caused or at least enabled or contributed to the crisis (the infamous “fire accelerant”) and urged the IASB to come forward with a robust technical fix quickly. Banking supervisors have worked in parallel and developed a new framework, Basel III, and have introduced extensive oversight over systemically important financial institutions. With banks implementing those new requirements, one does wonder whether or not the objectives have been met.
Prof. Dr. Andreas Barckow is the full-time President of the Accounting Standards Committee of Germany (ASCG/DRSC), the national standard-setter on financial reporting. He is a Board member of the European Financial Reporting Advisory Group (EFRAG) that advises the European Commission on endorsing IFRSs for use in Europe. Dr. Barckow represents Germany on the IASB’s Accounting Standards Advisory Forum (ASAF) and is a member of several working groups of the Schmalenbach-Gesellschaft. He has authored and contributed to many books and articles on IFRSs, particularly on the accounting for financial instruments, and has been a speaker on numerous international and national fora. Dr. Barckow holds an honorary professorship with the WHU – Otto Beisheim School of Management in Vallendar.