Define Offset accounting?

Offset means To cancel an accounting entry with an equal but opposite entry. 1.Investors will offset futures contracts and other investment positions in order to remove themselves from any associated liabilities. Almost all futures positions are offset before the terms of the futures contract are realized. Despite the fact that most positions are offset near the delivery term, the benefits of the futures contract as a hedging mechanism are still realized. 2.If the initial investment was a purchase, a sale is made to neutralize the position; to offset an initial sale, a purchase is made to neutralize the position. For example, if you wanted to offset a long position in a stock, you could short sell an identical number of shares. By doing so, your net ownership of the stock would be zero, and you would not incur any further gains or losses from the position.

offset accountin means When you enter an accounting entry, you often cancel it with an equal entry that is its opposite. This cancellation of one entry by another in the general ledger is a form of offsetting. However, offset accounting generally refers to the creation of contra accounts to offset, or net, one account from another on the balance sheet. Offset accounting also refers to the partial or full offsetting of debt of one party by another.

"Dear Friend, as far as your query is concerned that Define Offset accounting? Let me informed that offset accountin means When you enter an accounting entry, you often cancel it with an equal entry that is its opposite. This cancellation of one entry by another in the general ledger is a form of offsetting. However, offset accounting generally refers to the creation of contra accounts to offset, or net, one account from another on the balance sheet. Offset accounting also refers to the partial or full offsetting of debt of one party by another. Hope answer was helpful to you Regards, Arjun Pratap Singh "

Define Offset accounting?explain about that. Offset means To cancel an accounting entry with an equal but opposite entry. 1. Investors will offset futures contracts and other investment positions in order to remove themselves from any associated liabilities. Almost all futures positions are offset before the terms of the futures contract are realized. Despite the fact that most positions are offset near the delivery term, the benefits of the futures contract as a hedging mechanism are still realized. 2. If the initial investment was a purchase, a sale is made to neutralize the position; to offset an initial sale, a purchase is made to neutralize the position. For example, if you wanted to offset a long position in a stock, you could short sell an identical number of shares. By doing so, your net ownership of the stock would be zero, and you would not incur any further gains or losses from the position.

Define Offset accounting?explain about that. DEFINITION of 'Offset' 1. To liquidate a futures position by entering an equivalent, but opposite, transaction which eliminates the delivery obligation. 2. To reduce an investor's net position in an investment to zero, so that no further gains or losses will be experienced from that position. In accounting, an offset is essentially a withdrawal from one account to diminish an expense toward other account. A prime example of an offset in government accounting occurs in times of financial uncertainty and budget deficits, where cuts from programs deemed unnecessary serve to offset necessary expenses with the end goal of balancing the books. The same general principle applies to both personal and business accounting; however, in personal and business accounting, running a long-term deficit simply isn't an option and will result in bankruptcy. Offsets may also refer to tax offsets, such as claiming various deductibles.