Problem: lumpy bank writedowns. Quick solution: change the accounting rules. In the hope of avoiding a plethora of bank writedowns in any future downturn, theInternational Accounting Standards Board released draft rules on Thursday to change the way banks in about 100 countries report loan losses. The new “expected loss” system will allow provisions to be taken for loan losses over the life of a loan. Currently, provisions are made only when a loss is apparent.

How capital requirements will be affected is uncertain, but the change is a step in the right direction. In effect, large future writedowns will spread out and the provisions will paint investors a more accurate portrait of the risks in a bank’s loan book. But just as the new rules solve the problem of lumpy writedowns, they may also open a Pandora’s Box of ways to massage earnings.