Project Update

Balance Sheet—Offsetting—Joint Project of the FASB and IASB

Last updated on December 20, 2011. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.

(Updated sections are indicated with an asterisk *)

This project update summarizes the project activities and decisions of the IASB and the FASB (Boards). It was prepared by the staff and is for the information and convenience of their constituents. All decisions of the Boards are tentative, may change at future Board meetings, and do not change current accounting and reporting requirements. Decisions of the Boards become final only after extensive due process.

Project Objective
*Due Process Documents
*IASB Due Process Documents
Decisions Reached at Last Meeting
Summary of Decisions Reached to Date
Board/Other Public Meeting Dates
Background Information
Contact Information

Project Objective

The objective is to provide users of financial statements with information to understand the extent of offsetting in the statement of financial position and improve comparability between IFRS and U.S. GAAP.

*Due Process Documents

On December 16, 2011, the FASB completed this project with the issuance of Accounting Standards Update No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.

*IASB Due Process Documents

On December 16, 2011, the IASB issued final amendments to IFRS 7, Disclosures-Offsetting Financial Assets and Financial Liabilities.

Decisions Reached at Last Meeting (August 10, 2011)

See minutes below.

Summary of Decisions Reached to Date

See Accounting Standards Update No. 2011-11.

Board/Other Public Meeting Dates

The Board meeting minutes are provided for the information and convenience of constituents who want to follow the Boards' deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard. 

August 10, 2011 Board Meeting—Transition and Effective Date
July 21, 2011 Board Meeting—Disclosures
June 14, 2011 Board Meeting—Offsetting Approaches
May 17, 2011 Board Meeting—Feedback Summary
January 12, 2011 Board Meeting—Scope
December 16, 2010 Board Meeting—Disclosure
December 14, 2010 Board Meeting—Multilateral Arrangements, Disclosure, Transition, and Comment Period
November 17, 2010 Board Meeting—Factors for Offsetting Approaches
October 21, 2010 Educational Session—Factors for Offsetting Approaches
September 15, 2010 Board Meeting—Usefulness and Appropriateness of Offsetting
June 16, 2010 Board Meeting—Scope
March 10, 2010 Board Meeting—Agenda Announcement

Background Information

In February 2010, the FASB chairman added a project to provide guidance on the criteria that would determine when offsetting in the balance sheet is appropriate. The project was added in response to a request received from a constituent to permit offsetting of amounts related to certain stock lending and stock borrowing transactions.

At the January 2010 meeting, the IASB discussed the requirements in IAS 32 Financial Instruments: Presentation for offsetting a financial asset and a financial liability. The IASB did not make any decisions at that meeting but asked the staff to organize an education session on netting, in general, and in particular the netting provisions under Master Netting Agreements.

The IASB and FASB decided to conduct this project jointly in order to converge on the criteria for offsetting on the balance sheet under IFRS and U.S. GAAP.

Contact Information

Melissa Maroney
Project Manager
Barbara Davidson
Senior Technical Manager
  Katherine Cancro
Assistant Technical Manager