Arguably the credit crunch is an extreme phenomenon of the business cycle. Whether it is or not, ACCA is keen to consider what the accounting profession can do to enhance understanding of the issue and its implications and to learn lessons for the future.
The overall aim of the present paper is to look at the wider picture and to examine how sound corporate governance, risk management and accounting can help. ACCA has been following developments in the credit crunch closely since mid 2007. It has run events to debate the issues and has contributed to consultations from regulators and standard-setters.
This paper sets out ACCA’s thoughts on the subject, along with some recommendations. We are very grateful to the experts from the banking, investment and academic communities who have helped us in forming these views.