AASB 132 Requires an Entity to Offset a Financial Asset

question 14

Multiple Choice

AASB 132 requires an entity to offset a financial asset and a financial liability and present the net amount in the statement of financial position when two conditions are satisfied.Conditions for offsetting are generally NOT satisfied when:

• A)financial assets and liabilities have the same primary risk exposure that involve different counterparties.
• B)financial assets are pledged as collateral for non-recourse financial liabilities.
• C)obligations are expected to be recovered from a third party because of claims under insurance contracts.
• D)all of the above situations.

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Definitions:

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