Offsetting

The purpose of offsetting a financial asset and a financial liability and presenting them on a net basis is to reflect the entity's expected future cash flows from settling two or more separate financial instruments. When an entity has the right to receive or pay a single net amount under a right of set-off and intends to do so, it has in effect only a single financial asset or financial liability. In other circumstances, financial assets and financial liabilities are presented separately from each other consistent with their characteristics as resources or obligations of the entity.