What is offsetting?

February 04, 2025 00:03:41
What is offsetting?
Comptabilité et Audit
What is offsetting?

Feb 04 2025 | 00:03:41

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FNEGE

Show Notes

Offsetting means offsetting assets and liabilities and only reporting the net values in the financial statements. Whether offsetting should be allowed remains the largest difference between US and international accounting standards. Banning offsetting will have a significant impact on the financial statements, especially the banks. Hence, US banks stay firmly opposed to restricting offsetting in accounting due to great negative impact on the banks capital ratios.

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