Assets and liabilities,and income and expenses may be off-set if:

Question

Quizplus · Accepted Answer

Off-setting of assets and liabilities, and income and expenses is permitted only if there is a legal right of set-off and it is allowed by a standard. This means that there should be a specific agreement between the parties involved that allows for their mutual obligations to be netted off. This is typically seen in financial instruments where the parties have entered into a master netting agreement that allows for off-setting of exposures.

Assets and Liabilities,and Income and Expenses May Be Off-Set If