John Zhang is professor of accounting at Audencia Business School. He conducts empirical research on banking industry and derivative trading. He has published articles in international journals. (He has interests in disseminating academic insights to the general public in the field of banking research.)
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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.
- Dico du Management
- Comptabilité et Audit
