CERTYNEX IFRS ACADEMY

What is the objective of the IFRS 7 disclosures on the offsetting of financial assets and financial liabilities?

To justify presenting all financial assets and financial liabilities with the same counterparty at their net amount.

To describe only the offsetting actually applied in the statement of financial position, without regard to rights not exercised.

To enable users to evaluate the effect, or potential effect, of netting arrangements on the financial position.

To disclose the fair value of collateral received, regardless of any netting arrangement.