IASB and FASB propose to align balance sheet netting requirements.

• Position: Common approach

The International Accounting Standards Board and FASB have published a proposal to establish a common approach to offsetting financial assets and financial liabilities on the statement of financial position (balance sheet). The boards are proposing that offsetting should apply only when the right of set-off is enforceable at all times, including in default and bankruptcy, and the ability to exercise this right is unconditional, that is, it does not depend on a future event. The entities involved must intend to settle the amounts due with a single payment...