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Section 2250: Offsetting
[U.S. GAAP Codification Topic]
210-20 Offsetting
[U.S. GAAP before the Codification]
FASB Interpretation (FIN) No. 39, March 1992, Offsetting of Amounts Related to Certain Contracts, an interpretation of APB Opinion No. 10 and FASB Statement No. 105
FASB Interpretation (FIN) No. 41, December 1994, Offsetting of Amounts Related to Certain Repurchase and Reverse Repurchase Agreements, an interpretation of APB Opinion No. 10 and a modification of FASB Interpretation No. 39
1. General Principle
(1) It is not proper to offset assets and liabilities in the balance sheet.
(2) An exception
--> when a right of setoff exists
2. Right of setoff
Debtor's right to "discharge" the debt
--> by applying (A) against the debt
(A) an amount that "other party" owes to the debtor
3. Right of setoff exists if all of the following are satisfied:
(1) Amounts of debt are determinable
(2) Reporting entity has the "right" to setoff
(3) The right is enforceable by law
(4) Reporting entity has the "intention" to setoff
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