Set-off, legal right of is a debtor’s legal right, by contract or otherwise, to settle or otherwise eliminate all or a portion of an amount due to a creditor by applying against that amount an amount due from the creditor.
Set-off, legal right of is specifically discussed in IAS 32 Financial Instruments: Presentation.
Source: Glossary of Terms of IFRSs as at 31 December 2008.
