Offsetting (presentation of a net amount):
A) Is always allowed
B) Is generally allowed for balance sheet items, and income and expense items except when precluded by a specific IFRS.
C) Is generally allowed for balance sheet items, but never for income or expenses.
D) Can be seen when a company presents inventories net of obsolescence allowances.
E) Can obscure the existence of some assets and liabilities.

Question

Quizplus · Accepted Answer

Offsetting can obscure the existence of some assets and liabilities by netting them against each other, which can reduce transparency in financial reporting.

Offsetting (Presentation of a Net Amount)