Financial Instruments - Asset Liability offsetting
- Published in the Official Journal
- Rasmus Sommer
On 16 December 2011 the IASB and FASB issued common disclosure requirements that were intended to help users to better assess the effect or potential effect of offsetting arrangements on a company's financial position. The new requirements were set out in Disclosures-Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7). The IASB also clarified its requirements for offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32). The amendments addressed inconsistencies in current practice when applying the offsetting criteria in IAS 32 Financial Instruments: Presentation.
On 6 April 2012, EFRAG issued its Endorsement Advice Letter and Effects Study Report relating to the endorsement of the Amendments to IAS 32 and IFRS 7 for use in the European Union and European Economic Area. EFRAG supported the Amendments and concluded that they met the technical requirements of endorsement in the EU. EFRAG also concluded that the benefits of the Amendments outweigh the costs.