Global Standards for the world economy

Tuesday 26 January 2021

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IASB Investor Education

Webcast series with the CFA Institute

What investors need to know about financial instruments offsetting in a post-crisis world

 22 August 2014

In December 2011, the International Accounting Standards Board (IASB) introduced new disclosure requirements to help investors evaluate the effect or potential effect on an entity’s financial position of netting arrangements—sometimes referred to as offsetting arrangements—related to financial instruments.

At the same time, the IASB amended its application guidance for applying the criteria for offsetting of financial assets and liabilities.

The new disclosures and amended application guidance are designed to help investors better assess the risk exposures related to financial instruments; in addition, the disclosures will allow investors to compare IFRS financial statements more effectively with US GAAP financial statements. The new disclosures became effective 1 January, 2013 and the new application guidance became effective 1 January 2014.

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