The outgoing chief executive of the Financial Reporting Council has warned that any attempts to reduce pro-cyclicality through the use of accounting is taking the profession beyond its traditional role. In a speech to the FRC open annual meeting, Paul Boyle has warned against challenging fair value accounting measures in order to create an impression of stability in volatile markets. Debate has raged over the role accountants have played in the financial crisis since it began, with those in the profession keen to defend their role in front of the Treasury Select Committee meetings on the banking crisis, and accounting standard-setter the IASB vying to avoid political pressure over easing mark-to-market rules. Boyle said that it would not 'be appropriate' to use accounting as a public policy tool to reduce pro-cyclicality, as it is 'a measurement system that presents the financial performance and position of a company in as neutral way as possible.' 'It is not surprising,' he added, 'that banks report substantial profits when the economy is doing well and reduced profits, or even losses, when the economy is doing badly. This is accounting reflecting the economic cycle, which is a good characteristic of a financial measurement system.' Boyle added that current standards do need improving, but they need to be assessed against a clear understanding of what accounting actually is. 'It may well be appropriate to attempt to reduce the volatility of economic cycles, but there are more appropriate tools than accounting to serve this,' he said. Earlier this week, the International Accounting Standards Board issued new proposals in a bid to clean up current rules surrounding fair value.