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IFRS 7 Financial Instruments: Disclosures

IFRS 7 Financial Instruments: Disclosures requires disclosures about the significance of financial instruments on financial performance and position, and the nature and extent of risks arising.

Published August 2005. Effective 1 January 2007.

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Financial Reporting Faculty members get full access. Login to get the version of the standard relevant to specific time periods via eIFRS.

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*UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Find out more on which entities qualify and the criteria to be met.

Synopsis

IFRS 7 requires two main categories of financial instruments disclosure:

  • Information about the significance of financial instruments on financial performance and position, including:
  • Carrying value of each of the categories of financial instrument
  • amounts recognised in profit or loss with respect to financial instruments
  • descriptions of hedging arrangements
  • information about fair values of each class of financial instrument

Information about the nature and extent of risks arising from financial instruments, including:

  • Qualitative disclosures describing risk exposures for each type of financial instrument and the management of risk
  • Quantitative disclosures including summary quantitative data about exposure to risk at the reporting date and specific exposure to credit, liquidity and market risk.

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Recent amendments

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*Not EU endorsed as at 7 June 2017. Read more on EU Endorsement.

The following interpretations refer to IFRS 7

Current proposals

UK reduced disclosures

UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Find out more on which entities qualify and the criteria to be met.

FRS 101 paragraph 8(d) states that a qualifying entity is exempt from all of the requirements of IFRS 7 with the following limitations.

  • This exemption is not applicable to a financial institution.
  • Non-financial institutions must make additional disclosures if certain financial instruments are measured at fair value.
  • Equivalent disclosures must be made in the consolidated financial statements of the group in which the entity is consolidated.

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This page was last updated 7 June 2017