The requirement that the same accounting rules must be applied to the same circumstances, irrespective of whether they occur on or off the balance sheet, such as in special purpose entities, regardless of whether certain financial instruments are held in the trading book or the banking book, and regardless of the entity involved, whether it is a bank subject to prudential supervision or another company such as a hedge fund. – More broadly, the term equality of rules is also understood to mean – internationally the same accounting principles are applied to financial products. This was agreed in principle in November 2008 for most countries in the world, including the USA and China: all major countries joined the IMF’s financial sector assessment program. What is in dispute is when (and if ever) regulatory parity will be achieved globally. – See harmonization, regulation, regulatory arbitrage.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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https://www.gerhardmerk.de/