If the conditions for set off were initially met,and in a later period cease to be met,the debt remaining is to be:
A) Reinstated in the balance sheet.
B) Grossed up to the original amounts, and reported in the balance sheet pre-tax.
C) Written off immediately as an expense in the income statement.
D) Subject to ongoing review by the firm.
E) Transferred to the Australian Taxation Office, who will determine the fate of the debt.

Question

Quizplus · Accepted Answer

If the conditions for set off were initially met but later cease to be met, the debt remaining should be reinstated in the balance sheet. This is because the set off is no longer applicable, and the debt should be reflected accurately in the financial statements.

If the Conditions for Set Off Were Initially Met,and in a Later