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## Notes to the financial statements for the financial year ended 31 March 2014 continued 

## Note 40 Offsetting financial assets and financial liabilities continued 

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## Offsetting on balance sheet 

Amounts are offset in accordance with the criteria described in note 1 (xxiv) "Offsetting financial instruments" and are limited to the gross carrying values of the financial instruments. Therefore, when an asset is offset by a liability and the asset carrying value exceeds the liability carrying value, then the net amount presented for the asset will be the difference, and for the liability will be nil. 

## Amounts subject to enforceable netting arrangements 

Enforceable netting arrangements may allow for net settlement of specified contracts with a counterparty only in the event of default or other pre determined events, such that their potential effect on the Consolidated Entity’s and Company’s financial position in that circumstance is to settle as one arrangement. 

‘Other recognised financial instruments’ discloses other financial instruments recognised on balance sheet and ‘Cash and other financial collateral’ discloses amounts received or pledged in relation to the gross amounts of assets and liabilities. Both are subject to enforceable netting arrangements but are not offset due to the rights of set off applying only upon default or other predetermined events. This excludes non-financial instrument collateral. 

The amounts subject to enforceable netting arrangements but not set off on the balance sheet have been limited to the net amount presented on the balance sheet so as not to include effects of over-collateralisation. 

