Assets and liabilities, and income and expenses may be off-set if:
A) they are financial assets and liabilities;
B) they are in respect of borrowing and lending activities such as interest revenue and interest expense;
C) required or permitted by a standard;
D) there is no tax effect.

Question

Quizplus · Accepted Answer

Offsetting assets and liabilities, or income and expenses, is only allowed if it is specifically required or permitted by an accounting standard. This ensures consistency and comparability in financial reporting.

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