In AASB 132,the ability to set off makes reference to:
A) All assets and liabilities.
B) Financial assets and financial liabilities.
C) Current assets and current liabilities.
D) Preference shares and convertible notes.
E) Assets and liabilities of an amount above the materiality threshold.

Question

Quizplus · Accepted Answer

AASB 132 deals with financial instruments and sets out the accounting requirements for offsetting financial assets and liabilities in the balance sheet. The ability to set off is only applicable to financial assets and financial liabilities. Therefore, option B is the correct choice. The other options are incorrect because they either include non-financial assets and liabilities (options A, C, and E) or specific types of financial instruments (option D).

In AASB 132,the Ability to Set Off Makes Reference To