Macquarie Group Limited and its subsidiaries  2014 Annual Financial Report  macquarie.com.au  Notes to the financial statements  for the financial year ended 31 March 2014  continued Note 40  Offsetting financial assets and financial liabilities  continued Amounts subject to enforceable netting arrangements  Subject to offsetting on balance sheet  Related amounts not offset  Gross  amounts  $m   Amounts  offset  $m  Net amount  presented  $m  Other  recognised  financial  instruments  $m  Cash and  other  financial  collateral ) $m  Net amount  $m  Company 2014  Due from subsidiaries  11,635  (3,013)  8,622  –  –  8,622  Total assets  11,635  (3,013)  8,622  –  –  8,622  Due to subsidiaries  (3,299)  3,013  (286)  –  –  (286)  Total liabilities  (3,299)  3,013  (286)  –  –  (286)  Amounts subject to enforceable netting arrangements  Subject to offsetting on balance sheet  Related amounts not offset  Gross  amounts  $m   Amounts  offset  $m  Net amount  presented  $m  Other  recognised  financial  instruments  $m  Cash and  other  financial  collateral  $m  Net amount  $m  Company 2013  Due from subsidiaries  9,602  (2,620)  6,982  –  –  6,982  Total assets  9,602  (2,620)  6,982  –  –  6,982  Due to subsidiaries  (2,896)  2,620  (276)  –  –  (276)  Total liabilities  (2,896)  2,620  (276)  –  –  (276)  Offsetting on balance sheet  Amounts subject to enforceable netting arrangements  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.  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.  206 