CERTYNEX IFRS ACADEMY

Banque Orion holds derivatives with a counterparty under an enforceable master netting arrangement. It does not intend to settle net, so the IAS 32 offsetting criteria are not met and the amounts are not offset in the statement of financial position (case facts). Do these derivatives appear in the IFRS 7 offsetting disclosures?

No: those disclosures are limited to instruments actually offset under IAS 32, which these derivatives do not satisfy in the case presented.

No: as long as the IAS 32 offsetting criteria are not met, the master netting arrangement need not be mentioned in the notes.

Yes: the IFRS 7 offsetting disclosures also cover instruments subject to an enforceable master netting arrangement, whether or not they are offset.

Yes, but provided that the entity first applies the offsetting criteria within IFRS 7 to decide the net amount to be presented.