International accountancy firm Deloitte Touche Tohmatsu has raised concerns about the way banks account for losses, restarting the debate on the issue.
Jim Quigley, head of global operations at the firm, has put forward two completely different methods for accounting for losses – one that would satisfy politicians and the other that accounts would find acceptable.
Speaking to the Financial Times, Mr Quigley said he advocated banks making loan loss provisions for "incurred losses" separately from "expected losses".
He claimed that the two could be reported separately in banks accounts.
However, PricewaterhouseCoopers, another Big Four firm, has previously claimed that the move would "muddy the waters".
According to the news provider, the lack of consensus on the issue of accounting for losses in the banking sector threatens to undermine the introduction of a global set of accounting standards by the middle of next year.
Last week, Grant Thornton warned firms to prepare themselves for the impending introduction of a new financial reporting system.
