UK FRC publishes thematic reviews in respect of offsetting in the financial statements and IFRS 17
UK FRC publishes thematic reviews in respect of offsetting in the financial statements and IFRS 17
The UK Financial Reporting Council (FRC) has published two thematic reviews in respect of offsetting in the financial statements and IFRS 17 Insurance Contracts.
The key findings of the reviews include:
The key findings of the reviews include:
- Cash flows should be presented gross, unless otherwise required or permitted.
- Bank overdrafts and positive bank balances that form part of a cash pooling arrangement are offset in the statement of financial position only when there is an intention to exercise a legally enforceable right to set off period-end bank balances.
- High quality disclosures are important where financial instruments have been offset or are subject to a master netting arrangement or similar agreement.
- A reimbursement asset is required to be separately presented from the associated provision. Any reimbursement rights that satisfy the contingent asset requirements of IAS 37 should also be appropriately disclosed.