The existence of a right to set off:
A) Is sufficient to allow set off of a financial asset and financial liability.
B) Does not have to be enforceable at law to allow set off of a financial asset and financial liability.
C) Is not sufficient to allow set off of a financial asset and financial liability, without the intention to set off and legal enforceability of the right to set off.
D) Is not discussed in AASB 132.
E) None of the given answers.

Question

Quizplus · Accepted Answer

The existence of a right to set off is not sufficient to allow set off of a financial asset and financial liability. It also depends on the intention to set off and legal enforceability of the right to set off. This is stated in paragraph 42 of AASB 132.

The Existence of a Right to Set Off