From the Telegraph, and quoted without comment:

Iain Richards, of Aviva Investors, told the Lords that the IFRS system of auditing the banks had had “a material cost to the taxpayer and to shareholders” because “as a result dividend distributions have been made and bonuses have been paid that were imprudent”.

Mr Richards said: “The IFRS (system) is extremely pro-cyclical; it facilitated and exacerbated the credit bubble…There were some very clear risks inherent (in the banks)…the risks were extremely material.”  He told the Lords that rather than highlighting the problems, the accounting standards allowed the banks to look far more profitable than they were. The financial crisis exposed the shortfall that had built up.

… The “rules-based” IFRS system has been criticised for not identifying bad loans until they fail.  He said that the lesson of the crisis was that “rules encourage people to go round them.” He added: “If you have too much weight on rules not a professional over ride on that, we’ll give ourselves another problem.”

I report, you decide!