Banks' Derivatives Reporting - Partial Clearing Of The Fog
By Research Recap:
Moody’s examines revised disclosure requirements for banks’ capital markets activities anticipated to come into effect in 2013.
Disparate accounting rules on when a company should offset assets and liabilities and report a net amount on its balance sheet gives rise to one of the most significant differences between US Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) for banks with significant capital market activities. The US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are each scheduled to issue a revised disclosure standard in this area by the end of the year to enable users to better understand and compare the differences in presentation. However since the underlying accounting rules themselves are not being converged, users will have to remain vigilant to the potential non-comparability of key metrics between different entitiesComplete Story »