Pwc's Cfodirect Podcast

We continue our month of podcasts focused on financial statement presentation.In this episode, host Heather Horn sits down with Bret Dooley, Deputy Chief Accountant in PwC’s National Office leading our financial instruments team, for a refresher on a topic that is fundamental to financial reporting for its impact on financial statement ratios – balance sheet offsetting. Together, they break down the complexities involved in determining whether and how to offset balance sheet amounts. In this episode, you’ll hear:1:30 – A refresher on balance sheet offsetting, including its purpose and significance to financial statement users6:15 – A discussion of the general accounting framework, including the four conditions to determine whether a right of setoff exists15:33 – An explanation of the different offsetting arrangements for derivatives 19:11 – A breakdown of the six criteria for balance sheet offsetting of reverse repurchase and repurchase agreements22:59 – Final accounting reminders for companies navigating bal