The primary objective of this paper is to provide a
reasonable alternative perspective on the relationship between
FVA and the global financial crisis; a perspective
that focuses on finding the link before the crisis (during
the upswing) and one that reminds accountants that in
banking, accounting is more than just a messenger:
when bank deposits are created by accounting entries,
accounting is money. To this end, a model will be developed
in this paper that demonstrates the link between
accounting and bank capital regulations and helps to
aid understanding of the global financial crisis. The paper
answers the call by Arnold (2009:806) to ‘‘stimulate a
revival of accounting scholarship aimed at understanding
the relationship between accounting practice and the
macro political and economic environment in which it
operates