Under IFRS, companies may offset assets and liabilities; for example, accounts payable may be offset against cash to report net cash available for other expenses.

Question

Quizplus · Accepted Answer

Under IFRS, assets and liabilities should not be offset unless specific criteria are met, such as when there is a legally enforceable right to set off the recognized amounts and the intention is either to settle on a net basis or to realize the asset and settle the liability simultaneously. Accounts payable and cash typically do not meet these criteria for offsetting.

Under IFRS, Companies May Offset Assets and Liabilities; for Example