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Unformatted text preview: Shu-Ya Peng Article Summary & Analysis – PwC: Banks’ Disclosures Lack Substance. Summary In 2007’s financial reports, large banks seem to holding back information. However, because the credit crunch, investors demand more information to understand the risks that banks carry. Even for IFRS users, they only achieving compliance with IFRS 7’s minimum requirements - disclosure related to financial instruments. The IFRS users didn’t seem to disclose more information about the risk exposure which PwC believes is crucial in restoring market confidence. Analysis Despite the financial turmoil, Instead of holding back information, this is the perfect time for financial institutions to disclose information more fully to the investors. During an economic crisis, the systematic risk of the whole market is also higher. Investors will demand a greater return for investment or demand a higher interest rate. If the management do not disclosure enough information for a company, or the disclosure is lack of substance, investors will assume...
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This note was uploaded on 03/14/2009 for the course ACCT 540 taught by Professor Zhou during the Spring '09 term at Binghamton.
- Spring '09