Offsetting in financial statements permitted only when it reflects transaction substance and not for window dressing.

Offsetting of assets and liabilities, or income and expenses, is prohibited unless an Ind AS permits it; presentation should separately report assets, liabilities, income and expenses so users can assess transactions and future cash flows. Offsetting is acceptable only where it reflects the substance of the transaction and not for window dressing. Measurement allowances are not offsetting. Revenue is measured at expected consideration and incidental gains or losses from disposals, investments or foreign exchange should be presented net of related expenses, with material items disclosed separately. Reimbursement expenditure offsetting is permitted by Ind AS.

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