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| REPORTING THE CREDIT CRUNCH |
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This page highlights developments in financial instruments and liquidity-related disclosures identified in the European finance sector since January 2008.
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New disclosure attributes credit risk to clients rather than to brokers, October 2008
UK financial trading and market-making company IG indicates that credit risk in its receivables is attributable entirely to clients rather than to brokers. More.
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Merger relief and share premium cancellation boost retained earnings, October 2008
UK bank Barclays increases its retained earnings by £8.16 billion or 63.8% through adoption of merger relief and cancellation of share premium account. More.
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 Loss on subprime assets reduces profit by 46%, June 2008
French bank Crédit Agricole recognises a net loss of €4.1 billion on US subprime assets, that reduces its pre-tax profit by 46%. More.
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 Subprime impairments reduce pre-tax profit by 18.9%, June 2008
German bank Commerzbank impairs by €583 million subprime assets, reducing pre-tax profit by 18.9%, with further write-downs in equity. More.
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 Disclosure of CHF21.3 billion fair value loss relegated to note, May 2008
Swiss bank UBS discloses losses on trading activities of CHF21.3 billion, that lead to a pre-tax loss for the year, but describes them as "negative positions" and relegates disclosure to a note to the accounts. More.
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 Brief goodwill disclosures on major acquisition, May 2008
UK bank The Royal Bank of Scotland (RBS) acquires ABN AMRO for £48.6 billion, but confines its remarks on the £23.3 billion goodwill acquired to a single sentence. More.
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 SPEs consolidated following injections of liquidity, April 2008
UK bank HSBC consolidates two special purpose entities (SPEs) with total assets of US$40.7 billion, representing 1.7% of balance sheet totals, following substantial injections of liquidity that change its relationship with them. More.
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 Sparse information given on credit rating agencies, May 2008
UK bank Lloyds TSB extends its risk disclosures and discloses an AAA credit rating for both £5.9 billion mortgage backed securities and £4.8 billion government securities, though information on the ratings agency used is not linked to the table. More.
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 €6.4 billion loss incurred in 2008 recognised in 2007, April 2008
French financial services company Société Générale invokes true and fair override to recognise a loss of €6.4 billion arising in 2008, reducing profit by 77%, but does not explain fully its reasons for non-compliance with IFRS. More.
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 Financial instruments disclosures include a 12-month liquidity curve, March 2008
Danish Bank Danske Bank publishes additional financial instruments disclosures including back tests and a 12-month liquidity curve. More.
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 Income statement reclassified on adoption of IFRS 7, March 2008
Swiss asset manager and private bank Julius Baer reclassifies its income statement and discloses the classification of its financial instruments on adoption of IFRS 7, along with its Tier 1 and Tier 2 capital ratios. More.
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 Newly listed company's disclosures lack clarity, January 2008
In the light of a majority shareholding by two directors, UK financial company Hargreaves Lansdown's statement that treasury shares purchased prior to listing were bought "in the market", contributes to a lack of transparency. More.
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 Issue of capital securities represents 32% of equity, January 2008
UK financial services company Aberdeen Asset Management issues £198 million of perpetual subordinated capital securities that represent 32% of equity. More.
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