Treasury bailout a fillip for accounting rules says ACT

The Association of Corporate Treasurers has said that the government's moves to shore up the UK's banks is vital if faith is to be kept in current accounting rules.

The ACT’s chief executive, Richard Raeburn said: 'I hope these initiatives will amongst everything else help preserve the integrity of the international accounting standards movement and the consistent application of such standards in all markets.'

The Treasury announced today that up to £50bn would be available to UK banks in a bid to restore market confidence in the ailing institutions.

'We recognise that much remains to be done to flesh out the details and adapt to circumstances that are still developing,' the ACT said today.

Raeburn added: 'We hope that market participants will now work together to help restore systemic confidence. The initiatives by the authorities should play an important part in shortening the period of necessary adjustment in the wider economy’.