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IFRS 7 summary and timeline

A summary of IFRS 7 Financial Instruments: Disclosures, including information on current proposals and a timeline of past amendments, announcements, exposure drafts and consultations.

Summary

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Practical guidance on this standard is now on our main IFRS 7 Financial Instruments: Disclosures page, with links to eIFRS, the full text standard, eBooks and other resources.

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.

Current proposals

  1. The Board issued ED/2019/7 General Presentation and Disclosures in December 2019. The exposure draft proposes a new IFRS Standard to replace IAS 1. One of the proposed changes is to move paragraphs currently included in IAS 1 and relating to the disclosure of financial instruments classified as equity into IFRS 7.
  2. In August 2019 the Board issued ED/2019/6 Disclosure of Accounting Policies. The ED proposes that amendments are made to IFRS 7 to bring its requirements into line with the proposed amendments to IAS 1 i.e. that material (rather than significant) accounting policies are disclosed. Final amendments are expected in the first quarter of 2021.

Timeline

Date Update
5 January 2021 UK-adoption of Amendments for IBOR Phase 2 and Amendments to IFRS 4
The Interest Rate Benchmark Reform—Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) was adopted for use in the UK and is effective for annual periods beginning on or after 1 January 2021. 
27 August 2020 IASB issues Interest Rate Benchmark Reform Phase 2 – amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
Effective for annual periods starting on or after 1 January 2021.
26 September 2019 IASB issues Interest Rate Benchmark Reform Phase 1 – amendments to IFRS 9, IAS 39 and IFRS 7
Effective for annual periods starting on or after 1 January 2020.
25 September 2014 IASB issues Improvements to IFRSs 2014 (amendments to IFRS 7)
Effective for annual periods starting on or after 1 January 2016.
16 December 2011 IASB issues Mandatory Effective Date and Transition Disclosures (amendments to IFRS 7)
Effective for annual periods starting on or after 1 January 2015 or when IFRS 9 is first applied.
16 December 2011 IASB issues Disclosures – Offsetting Financial Assets and Financial  Liabilities (amendments to IFRS 7)
Effective for annual periods starting on or after 1 January 2013.
7 October 2010 IASB issues Disclosures – Transfers of Financial Assets (amendments to IFRS 7)
Effective for annual periods starting on or after 1 July 2011.
6 May 2010 IASB issues Improvements to IFRSs (amendments to IFRS 7)
Effective for annual periods starting on or after 1 January 2011.
5 March 2009 IASB issues Improving Disclosures about Financial Instruments
Effective for annual periods starting on or after 1 January 2009.
13 October 2008 IASB issues Reclassification of Financial Assets (amendments to IFRS 7)
Effective 1 July 2008.
22 May 2008 IASB issues Improvements to IFRSs (amendments to IFRS 7)
Effective for annual periods starting on or after 1 January 2009.
18 August 2005 IASB issues IFRS 7
Effective for annual periods  starting on or after 1 January 2007.