Profit volatility will be a fact of life
Commonwealth Bank said that the transition to international accounting standards may lead to volatility in the level of reported and retained profits. CBA's executive manager for group finance, Geoff Steel, said that under the proposed international financial reporting standards all derivative financial instruments would be recognised on the balance sheet, along with loan origination fees. The standards would also allow the deferral of deficits between superannuation fund assets and employee entitlements. “Some of the numbers will be several-hundred-million-type adjustments,” he said.