If a legally enforceable right exists to set off recognised amounts of financial assets and liabilities and the Group intends to settle on a net basis or to realise the asset and settle the liability simultaneously, all related financial effects are netted Fixed assets Impairment of assets The carrying value of assets is reviewed at each balance sheet date to assess whether there is any indication of impairment If any such indication exists, the recoverable amounts of the assets are estimated Where the carrying value exceeds the estimated recoverable amount such assets are written down to their recoverable amount If the circumstances leading to the impairment no longer exist, the appropriate portion of the impairment loss previously recognised is written back
The right of the obligor to deduct an amount that the originator owes to him, from the amount he owes to the originator A right of set-off is considered to be a defect in the receivables being assigned Normally, the receivables sale agreement would contain a warranty that there is not right of set-off with the obligor