Which statement is not correct about offsetting?
A)Offsetting is required under IFRS when the entity is willing and legally able to offset.
B)Offsetting is required when it better reflects the economic substance of the transaction.
C)Offsetting is generally permitted under IFRS,unless it violates an accounting principle.
D)Offsetting is generally permitted of the allowance for doubtful accounts.

Question

Quizplus · Accepted Answer

Offsetting is not generally permitted under IFRS unless specific criteria are met, such as the ability and intention to settle net or simultaneously. It is not allowed simply because it does not violate an accounting principle.

Which Statement Is Not Correct About Offsetting