From January 1, 2005, the accounting standards applicable to publicly traded European banking institutions will be the standards issued by the IASB. The purpose of this paper is twofold. From a sample of nineteen European banking institutions, we first study the characteristics of this fair...

When historical cost is used, the incomes are smoothed in a way that delays the recognition of the financial institutions lessening solvency, especially in the case of fixed rate loans when market rates are decreasing. We study the case of Credit Lyonnais which had the opportunity to transfer...