As preparers and users of accounts brace themselves for another regulatory onslaught this autumn, one thing they should not count on is an end to so-called “pro-cyclical” accounting.

Some believe the International Accounting Standards Board’s proposed switch from an “incurred” loss model to an “expected” loss model will help smooth out peaks and troughs in bank profits over the economic cycle. But in responding to the IASB’s “request for information” (deadline September 1) they should be careful what they wish for.