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It is not proper to offset assets and liabilities in the balance sheet.
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Hello Catrinna255,

You recently assisted me with my attached assignment below. I submitted this for my initial draft. I was hoping that it was also ready to be submitted for my final draft. My professor feedback:

“You seem to be missing a key issue related to off sets addressed in the codification.” I wanted to know if the following information (i.e. codification topic 210-20) is what she may be referring to and if so how do I word this into my attached document. Once again, thanks for your assistance.

Codification Topic 210-20
Offsetting

 FASB Interpretations (FIN)
FASB Interpretation (FIN) No. 39, March 1992
"Offsetting of Amounts Related to Certain Contracts
an interpretation of APB Opinion No. 10 and FASB Statement No. 105"
FASB Interpretation (FIN) No. 41, December 1994
"Offsetting of Amounts Related to Certain Repurchase and Reverse Repurchase Agreements
an interpretation of APB Opinion No. 10 and a modification of FASB Interpretation No. 39"
 General Principle
1. It is not proper to offset assets and liabilities in the balance sheet.
2. An exception
--> when a right of setoff exists
 Right of setoff
Debtor's right to "discharge" the debt 
--> by applying (A) against the debt
(A) an amount that "other party" owes to the debtor
 Right of setoff exists if all of the following are satisfied:
1. Amounts of debt are determinable
2. Reporting entity has the "right" to setoff
3. The right is enforceable by law
4. Reporting entity has the "intention" to setoff

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