Raiders of the loss arc

Regulators are looking at ways to remove pro-cyclicality from accounting standards, with some advocating the scrapping of incurred loss models in favour of dynamic provisioning

The Iberian lynx, the Caspian seal, the grey-faced sengi and the incurred loss model of loan provisioning - all are critically endangered, but it could be the last that is wiped from the face of the planet soonest. According to politicians and regulators, the current accounting standard is a dangerous pest that has added to the strain on banks during the worst crisis in living memory. It is now being hunted mercilessly, and its days appear to be numbered. But there are fears among accountants