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Case study: One of the supplier ask me to make a time deposit (Our Company Name) against the payable,  once the time deposit matured, both the principal and interest will directly paid by the bank to the supplier.  Under IAS32, can I setoff the financial asset (Time Deposit) against the financial liability (Payable) in my Financial Statement?
in IAS 32 - Financial Instruments: Presentation by

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Any set off of financial assets & financial liabilities has to be done as per IAS 32 - Financial Instruments: Presentation. IAS 32 specifies that a financial asset and a financial liability should be offset and the net amount reported when, and only when, an entity:

1. has a legally enforceable right to set off the amounts; and
2. intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

I think your case satisfies the requirement of the standard & you can set off as mentioned.
by Level 3 Member (6.2k points)