Conceptual Framework for Financial Reporting

parties. If those rights and obligations are interdependent and cannot be
separated, they constitute a single inseparable asset or liability and hence
form a single unit of account. For example, this is the case with executory
contracts (see paragraph 4.57). Conversely, if rights are separable from
obligations, it may sometimes be appropriate to group the rights separately
from the obligations, resulting in the identification of one or more separate
assets and liabilities. In other cases, it may be more appropriate to group
separable rights and obligations in a single unit of account treating them as a
single asset or a single liability.
Treating a set of rights and obligations as a single unit of account differs from
offsetting assets and liabilities (see paragraph 7.10).
Possible units of account include:
(a)
an individual right or individual obligation;
(b)
all rights, all obligations, or all rights and all obligations, arising from
a single source, for example, a contract;
(c)
a subgroup of those rights and/or obligations—for example, a subgroup
of rights over an item of property, plant and equipment for which the
useful life and pattern of consumption differ from those of the other
rights over that item;
(d)
a group of rights and/or obligations arising from a portfolio of similar
items;
(e)
a group of rights and/or obligations arising from a portfolio of
dissimilar items—for example, a portfolio of assets and liabilities to be
disposed of in a single transaction; and
(f)
a risk exposure within a portfolio of items—if a portfolio of items is
subject to a common risk, some aspects of the accounting for that
portfolio could focus on the aggregate exposure to that risk within the
portfolio.
4.52
4.53
4.54
4.55
Conceptual Framework
© IFRS Foundation
A47

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