The UK Financial Reporting Council (FRC) has published thematic reviews on offsetting in the financial statements and on IFRS 17 'Insurance Contracts'.
As a result of the review on offsetting, the FRC reminds companies that:
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Cash flows should be presented gross, unless otherwise required or permitted.
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Bank overdrafts and positive bank balances that form part of a cash pooling arrangement are offset in the statement of financial position only when there is an intention to exercise a legally enforceable right to set off period-end bank balances.
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High quality disclosures are important where financial instruments have been offset or are subject to a master netting arrangement or similar agreement.
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A reimbursement asset is required to be separately presented from the associated provision.
The review on IFRS 17 showed that while some further areas for improvement were identified, many of these related to areas commonly raised with companies, such as judgements and estimates, and
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