IASB clarifies its requirements for offsetting financial instruments
16 December 2011
The International Accounting Standards Board (IASB) today clarified its requirements for offsetting financial instruments by issuing Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32). The amendments address inconsistencies in current practice when applying the offsetting criteria in IAS 32 Financial Instruments: Presentation.
The amendments clarify:
- the meaning of ‘currently has a legally enforceable right of set-off’; and
- that some gross settlement systems may be considered equivalent to net settlement.
The amendments are effective for annual periods beginning on or after 1 January 2014 and are required to be applied retrospectively.
The amendments are part of the IASB’s offsetting project. As part of that project, today the IASB also separately issued Disclosures—Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7).
Press enquiries
- Mark Byatt, Director of Communications and External Affairs, IFRS Foundation
Telephone: +44 (0)20 7246 6472
Email: mbyatt@ifrs.org
- Sonja Lardeau, Communications Manager, IFRS Foundation
Telephone: +44 (0)20 7246 6463
Email: slardeau@ifrs.org
Technical enquiries
-
Barbara Davidson, Senior Technical Manager, IASB
Telephone: +44 (0)20 7246 6907
Email:
bdavidson@ifrs.org