|The Essentials aims to increase investors’ awareness of IFRS and to enhance the insights they obtain when analysing information produced by IFRS financial statements. Each issue aims to provide an overview of how a specific accounting Standard (or aspect of it) is relevant to financial statement analysis.
US GAAP and IFRS treat offsetting in different ways. This difference can affect the size of the balance sheet reported by banks.
In this issue of The Essentials we explain how investors can leverage the notes to the financial statements to make comparisons between the balance sheets of banks.
This issue also includes:
- Offsetting explained
- When do banks report a net figure?
- How does this tie in with Basel III?
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