When Is Offsetting Allowed in Ifrs?

The offsetting model in IAS 32, Financial Instruments: Presentation, requires an entity to offset a financial asset and financial liability when, and only when, an entity currently has a legally enforceable right of set-off and intends either to settle on a net basis or to realise the financial asset and settle the ...

Is offsetting allowed in IFRS?

As a general rule, offsetting is not allowed in IFRS (IAS 1.32). ... Namely, a financial asset and a financial liability should be offset and the net amount presented in the statement of financial position when an entity (IAS 32.42):

When can you offset assets and liabilities?

You can legally offset assets and liabilities when you have a legal, enforceable right to treat them as one item -- that is, the other party can't insist that you deal with the asset and the liability as separate matters.