EFRAG issued an Invitation to Comment relating to the endorsement for use in the EU of the Amendments to IAS 32, 'Offsetting Financial Assets and Financial Liabilities', and IFRS 7, 'Disclosures–Offsetting Financial Assets and Financial Liabilities'.
The offsetting model in IAS 32 'Financial Instruments: Presentation' requires an entity to offset a financial asset and a financial liability when it currently has a legally enforceable right of set-off and intends either to settle on a net basis or to realise the financial asset and settle the financial liability simultaneously. The IASB issued Amendments to IAS 32 'Offsetting Financial Assets and Financial Liabilities' to add application guidance to address inconsistencies in current practice when applying the requirements.
The IASB also issued IFRS 7 'Disclosures–Offsetting Financial Assets and Financial Liabilities', which requires disclosures that are intended to help users to assess better the effect or potential effect of offsetting arrangements on a company's financial position.
EFRAG has issued an Invitation to Comment relating to the endorsement for use in the EU of the Amendments to IAS 32 and the Amendments to IFRS 7. It is consulting both on its assessment of these amendments against the technical criteria for the endorsement in the EU, and on its initial assessment of the costs and benefits that would arise from their implementation and application in the EU.
Comments are requested by 25 February, 2012.
Press release
© EFRAG - European Financial Reporting Advisory Group
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