International Financial Reporting Standards (IFRS), which have been described as "fatally flawed", let RBS report a core tier one ratio for 2010 more than 4pc higher than it would have been under the UK's old accounting rules that were replaced in 2005.
The analysis comes ahead of the publication of a House of Lords Economic Affairs Committee report into UK accounting practices expected to be highly critical of the IFRS system.
According to RBS's latest accounts, which were calculated using IFRS, the bank has tangible shareholder assets of £58bn and core tier one capital of 10.7pc.
Tim Bush, a City veteran and member of the "Urgent Issues Task Force" that scrutinizes the work of the Accounting Standards Board, has calculated that under pre-2005 UK GAAP (Generally Accepted Accounting Principles) rules, which governed accounting in Britain for over 100 years, RBS would have a tangible shareholder assets of £33bn and a core tier one capital of just 6pc.
The criticism is of the IFRS framework. There is no suggestion RBS or any other British bank has broken the accounting rules.
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