|
|
 |
|
Viewing report
|
|
|
|
Accounting Proposal Struggles To Create Global Convergence In Balance Sheet Offsetting Sep 11
Standard & Poors, Sep 2011
Abstract
Controversial proposed accounting rules to provide guidance on when balance sheet offsetting of financial assets and liabilities would be permissible are looming. Accounting standard-setters have thus far been unable to reach a converged solution, most notably about netting derivatives subject to master netting agreements. Although there are two groups of capital market participants--those that support the proposed accounting rules, and those opposed--a consistent set of global accounting standards remains the desired outcome for both groups. Standard & Poor's Ratings Services believes this outcome is of particular importance because of the potential implications for financial services companies, where the balance sheets are in many cases meaningfully grossed up when netting is not permissible. It could also have implications for the way...
Companies mentioned in this report are: Deutsche Bank AG,Bank of America Corp.,Morgan Stanley,JPMorgan Chase & Co.,Citigroup Inc.,Credit Suisse Group AG,The Goldman Sachs Group Inc.,HSBC Holdings PLC,UBS AG,Barclays PLC
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
|
|
|
|
