Liabilities without offsetting

Learning objectives

• Explain the prohibition on offsetting the assets and liabilities of a disposal group.L2, L3

Normative references

• IFRS 5 §38Presentation in the statement of financial position: non-current assets held for sale and the assets of a disposal group so classified are presented separately from other assets, and the liabilities of the group separately from other liabilities, without offsetting them into a single amount; the major classes of assets and liabilities are presented in the statement of financial position or in the notes (except as permitted by para. 39); any cumulative income or expense recognised in other comprehensive income relating to those items is presented separately.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

2 questions

• How are the liabilities of a group classified as held for sale presented in relation to its assets?L2
• At the closing, Ostane's disposal group includes assets of €1,500,000 and directly related liabilities of €400,000. The accountant suggests a single net line of €1,100,000 on the assets side. Which presentation is consistent with IFRS 5?L3