CERTYNEX IFRS ACADEMY

Lumen SA holds a receivable of 300,000 from a customer and owes 120,000 to the same customer (case facts). No IFRS Accounting Standard requires or permits offsetting here (case data). How does IAS 1 treat these two amounts in the statement of financial position?

Present a net receivable of 180,000, since both amounts relate to the same counterparty.

Present the receivable of 300,000 and the payable of 120,000 separately.

Offset the two amounts if management considers that the net amount is easier to read.

Present a net receivable of 180,000 and disclose the gross amounts in the notes.