IASB publishes exposure draft on offsetting
28 Jan 2011
The International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (FASB) have published for public comment joint proposals on the offsetting of financial assets and financial liabilities in the statement of financial position.
ED/2011/01 Offsetting Financial Assets and Financial Liabilities proposes to require offsetting when an entity has the right to set-off a financial asset and financial liability and intends to either settle on a net basis or simultaneously.
The main proposals of the ED in detail
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The proposed requirements would supersede the requirements on offsetting in IAS 32 Financial Instruments: Presentation. Although the proposals are broadly comparable to the requirements contained in IAS 32 currently, they would modify the offsetting criteria in IFRSs by clarifying that the right of set-off should not only be currently enforceable. Additionally, the proposal would enhance the disclosures by requiring improved information about the assets and liabilities subject to set-off and the related arrangements.
The ED has a 90-day comment period with comments due on 28 April 2011.
Click for:
- IASB press release (PDF 53k)
- Access to the Exposure Draft (link to IASB's website)
- IASB Snapshot: Offsetting Financial Assets and Financial Liabilities (PDF 90k)
- History of the IASB's offsetting project on IAS Plus