• Register
Search Questions / Answers

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. You can register with your email or with facebook login few seconds

Get AccountantAnswer App

is it possible to present bad debts written off and bad debts recovered seperately


Bad debts written off is an expense while bad debts recovered is an income. can the two be net off

asked Jun 13 in IAS 1 - Presentation of Financial Statements by anonymous

2 Answers

0 votes
If both relates to same party then you have to net off other wise you have to show separately both amount
answered Jun 13 by veshmalahotra Level 4 Member (9,780 points)
0 votes
The general rule (IAS 1)  is that an entity shall not offset assets and liabilities or income and expenses, unless required or permitted by an IFRS.

But it is allowable where offsetting reflects the substance of the transaction or other event, detracts from the ability of users both to understand the transactions, other events and conditions that have occurred and to assess the entity’s future cash flows (IAS 1.33).

I think it is okay to do so in your case specially if you have so many such transactions. but if this is a one-off case of high values, then better to show separately.
answered Jun 13 by Jeremy Level 3 Member (6,160 points)


...