Netting off a financial asset and financial liability  LO10 In each of the situations below, state whether the financial asset and financial liability must be offset in the books of Company A as at 30 June 2019, and explain why. 1. Company A owes Company B $500 000, due on 30 June 2022. Company B owes Company A $300 000, due on 30 June 2023. A legal right of set-off between the two companies is documented in writing, and the parties have indicated their intent to settle the amounts on a net basis. 2. Company A owes Company B $500 000, due on 30 June 2020. Company B owes Company A $300 000, due on 31 March 2020. A legal right of set-off between the two companies is documented in writing, and the parties have indicated their intent to settle amounts owing between the two parties on a net basis whenever possible. 3. Company A owes Company B $500 000, due on 30 June 2020. Company C owes Company A $300 000, due on 30 June 2020. 4. Company A owes Company B $500 000, due on 30 June 2020. Company C owes Company A $500 000, due on 30 June 2020. A legal right of set-off between the three companies is documented in writing, and the parties have indicated their intent to settle the amounts on a net basis. 5. Company A owes Company B $500 000, due on 30 June 2021. Company A has plant and equipment with a fair value of $500 000 that it pledges to Company B as collateral for the debt.