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Can we set off financial assets against financial liabilities?

We have security deposits receivable & payables on various properties we have obtained on lease from third parties and on leases given to third parties by us. Can we set off receivables & payables and present the net amount?

asked Feb 12, 2013 in IAS 32 - Financial Instruments: Presentation by anonymous
retagged Feb 16, 2013 by Visio

1 Answer

0 votes
Any set off of financial assets & financial liabilities has to be done as per IAS 32 - Financial Instruments: Presentation. IAS 32 specifies that a financial asset and a financial liability should be offset and the net amount reported when, and only when, an entity:

1. has a legally enforceable right to set off the amounts; and
2. intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
answered Feb 12, 2013 by Russie Level 2 Member (3,430 points)