Which of the following statements is correct with respect to set-off of assets and liabilities?
A) If a right of set-off exists, an entity shall disclose the net amount of the financial assets and the financial liability in the notes to the accounts.
B) If a right of set-off exists, an entity shall disclose the net amount of the financial assets and the financial liability in income statement.
C) If a right of set-off exists, an entity shall present the net amount of the financial assets and the financial liability in the statement of financial position.
D) If a right of set-off exists, an entity shall present the net amount of the financial assets and the financial liability in income statement.
E) None of the given answers.

Question

Quizplus · Accepted Answer

If a right of set-off exists, an entity shall present the net amount of the financial assets and the financial liability in the statement of financial position. This is in accordance with the requirements of IAS 32 Financial Instruments: Presentation. The net amount represents the difference between the fair value of the financial assets and the financial liabilities that are subject to the right of set-off. The disclosure of the right of set-off and the related amounts shall be given in the notes to the accounts.

Which of the Following Statements Is Correct with Respect to Set-Off