No c®oo©k is cooking the same dish in the same way. So if we talk about European and US banks in cooking up their books we have to realize that IFRS and GAAP are not producing the same figures. We have to adjust before we can compare.
As an example we take from a report from Deutsche Bank a very good picture concerning the ‘difference’ of the value of total assets under IFRS (gross exposures) and GAAP (derivatives are represented at their net values).
We observe that IFRS is overstating the leverage compared to GAAP accounting.
As an example we take from a report from Deutsche Bank a very good picture concerning the ‘difference’ of the value of total assets under IFRS (gross exposures) and GAAP (derivatives are represented at their net values).
We observe that IFRS is overstating the leverage compared to GAAP accounting.
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