# ASC 210-20-15: Balance Sheet — Offsetting — 15 Scope and Scope Exceptions

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/210/20/#15-scope-and-scope-exceptions)

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## ASC 210-20-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/210/20/#15-scope-and-scope-exceptions)

SEC content: no

#### Entities

##### [210-20-15-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-15-1)

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The guidance in this Subtopic applies to all entities.

#### Transactions

##### [210-20-15-2](https://asc.understandingaccounting.org/asc/210/20/#210-20-15-2)

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The guidance in this Subtopic does not apply to the following types of transactions and contract arrangements:

1.  a
    
    The derecognition or nonrecognition of assets and liabilities. Derecognition by sale of an asset or extinguishment of a liability results in removal of a recognized asset or liability and generally results in the recognition of gain or loss. Although conceptually different, offsetting that results in a net amount of zero and derecognition with no gain or loss are indistinguishable in their effects on the statement of financial position. Likewise, not recognizing assets and liabilities of the same amount in financial statements achieves similar reported results.

#### Other Considerations

##### [210-20-15-3](https://asc.understandingaccounting.org/asc/210/20/#210-20-15-3)

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The general principle of a [right of setoff](https://asc.understandingaccounting.org/glossary/r/#right-of-setoff "A right of setoff is 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.") involves only two parties, and exceptions to that general principle shall be limited to practices specifically permitted by the Subtopics listed in this paragraph. Various accounting Subtopics specify accounting treatments in circumstances that result in offsetting or in a presentation in a statement of financial position that is similar to the effect of offsetting. The guidance in this Subtopic does not modify the accounting treatment in the particular circumstances prescribed by any of the following Subtopics:

1.  a
    
    Subtopic 842-50 ([leveraged leases](https://asc.understandingaccounting.org/glossary/l/#leveraged-lease "From the perspective of a lessor, a lease that was classified as a leveraged lease in accordance with the leases guidance in effect before the effective date and for which the commencement date is before the effective date."))
    
2.  b
    
    Subtopic 715-30 (accounting for pension plan assets and liabilities)
    
3.  c
    
    Subtopic 715-60 (accounting for plan assets and liabilities)
    
4.  d
    
    Subtopic 740-10 (net tax asset or liability amounts reported)
    
5.  dd
    
    Paragraphs
    
    [815-10-45-1 through 45-7](https://asc.understandingaccounting.org/asc/815/10/#815-10-45-1)
    
    (derivative instruments with the right to reclaim cash collateral or the obligation to return cash collateral)
    
6.  e
    
    Subtopics 940-320 (trade date accounting for trading portfolio positions) and 910-405 (advances received on construction contracts)
    
7.  f
    
    Paragraph [942-210-45-3A](https://asc.understandingaccounting.org/asc/210/942/#210-942-45-3A) (reciprocal balances with other banks).