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Chapter 4 — Loss Recoveries

4.7 Balance Sheet Presentation — Offsetting

4.7 Balance Sheet Presentation — Offsetting

ASC 210-20-20 defines a right of setoff as “a debtor’s legal right, by contract or otherwise, to discharge all or a portion of the debt owed to another party by applying against the debt an amount that the other party owes to the debtor.” A right of setoff exists when all of the criteria in ASC 210-20-45-1 are met.