(IFRS) for Small and Medium-sized Entities (SMEs)

IFRS FOR SMES – JULY 2009Liabilities other than financial liabilities2.51 Most liabilities other than financial liabilities are measured at the best estimateof the amount that would be required to settle the obligation at the reportingdate.Offsetting2.52 An entity shall not offset assets and liabilities, or income and expenses, unlessrequired or permitted by this IFRS.(a)(b)Measuring assets net of valuation allowances—for example, allowances forinventory obsolescence and allowances for uncollectible receivables—is notoffsetting.If an entity’s normal operating activities do not include buying and sellingnon-current assets, including investments and operating assets, then theentity reports gains and losses on disposal of such assets by deducting fromthe proceeds on disposal the carrying amount of the asset and relatedselling expenses.© IASCF 21