This picture, posted by Alea, shows the difference in the value of “total assets” depending on whether IFRS or US-GAAP is used. IFRS deals with gross exposures, while under GAAP, derivatives are represented at their net value. It shows that using the IFRS standard yields vastly higher leverage ratios than under US-GAAP.
Aggregation of news stories and blog entries that are pertinent to the the financial stability landscape. Areas covered include risk management, structured finance, including developments in credit default swap markets.