- quality audits • financial engineering & exotic products : reporting substance over form ( e. g. securitisations, structured products ) • complex accounting rules for financial instruments : greater use of fair values, hedge accounting, accounting for ( embedded ) derivatives restricted further audit development and enhancement are welcome z continued work on audit quality chain • actual implementation & operation of oversight process : rollout & review of piob activities • continued focus on governance at individual firms in addition to oversight • greater transparency of audit process : what work have the auditors actually performed? • further development of high - quality audit practices ( e. g. fair value measurement, marking - to - model, transnational audits ) restricted closing remarks : accounting z significant emerging accounting developments are not all moving in parallel with supervisory developments • need to remain vigilant, well - prepared and involved in the standard - setting process ; constructive but critical dialogue • importance of maintaining and promoting a prudent and forward - looking stance in the interest of financial stability • determining the role of fair value accounting from a supervisory perspective • working towards an appropriate credit risk accounting model restricted closing remarks : accounting z significant emerging accounting developments are not all moving in parallel with supervisory developments ( cont ’ d ) • need to bridge gap between accounting and supervisory models • identifying the gaps and implementing appropriate filters : financial reporting vs. regulatory reporting, accounting capital vs. regulatory capital restricted closing remarks : auditing z not only accounting, but also auditing, requires continued supervisory attention • continued involvement in improving the audit quality chain • oversight, governance, transparency, high - quality audit practice standards • assessment of external auditor ’ s role in supervisory methodology • refining the auditor ’ s role in relation to basel ii

public and the private sector is. if the government states clear deadlines, the market will respond effectively. i have spoken about the importance of sustainability. how the business community can get involved in sustainability. why it is important to start now, and how the market and government can complement each other. before i finish, i want to remind you that even the smallest of changes can make a world of difference. the power of a single word : sustainable a few years ago we changed our mission statement to include the word ‘ sustainable ’. “ dnb seeks to safeguard financial stability and thus contributes to sustainable prosperity in the netherlands ”. “ you ’ re the dutch central bank, not an ngo! ”, said some. well, our institution has been around for over two centuries. we take the long - term view. and believe me, central bankers and prudential supervisors love the concept “ long term ”. it is in our genes. it ’ s our business to know that the insurance company we pay our premiums to today, will still be around if our house burns down twenty years from now. that when our children start saving for their retirement, they will be able to collect their pensions half a century later. and that ’ s also what sustainability is about : what works in the long term. conclusion adding just one word to your mission statement can set an entire organisation in motion. and if that organisation brings together other organisations, if it actively seeks cooperation with other parties, that word will not only spread, but it will lead to real actions. to a great many real actions. and if the word is well - chosen, these actions might do a great deal of good. i have a statement to make. i am a banker. not just a banker, but a supervisor of banks. a central banker. our mission is sustainable prosperity. but i am not just a banker. i am also a citizen, a father, a fellow traveller on space ship earth. sustainability is our core business as a central bank. this holds true for all of us. by its very definition, we will not be able to survive in an unsustainable world. already the framers of the american constitution knew this : “ in order to secure the blessings of liberty, to ourselves and posterity ”. posterity. the framers considered this concept of such utmost importance that they placed it most prominently in the very first sentence of the constitution. even before the first article. posterity. sustainability.