What do you need to know about IFRS 7?

IFRS 7 requires entities to provide disclosures in their financial statements that enable users to evaluate: 1 the significance of financial instruments for the entity’s financial position and performance. 2 the nature and extent of risks arising from financial instruments to which the entity is exposed during the period and… More

When did IAS 32 become part of IFRS 7?

IAS 32 was subsequently renamed as IAS 32 Financial Instruments: Presentation. IAS 1 Presentation of Financial Statements (as revised in 2007) amended the terminology used throughout IFRS, including IFRS 7. In March 2009 the IASB enhanced the disclosures about fair value and liquidity risks in IFRS 7.

Who is exposed to operational risk under IFRS 7?

IFRS 7 applies to all entities and to all types of financial instrument – recognised and unrecognised [IFRS 7 paras 3 to 4]. 1.1 Investment manager A, who manages several investment funds for third- party investors, is exposed to significant operational risk. Does IFRS 7 require disclosures about operational risk?

What are the quantitative disclosures in IFRS 7.29?

[IFRS 7.29 (a)] The quan­ti­ta­tive dis­clo­sures provide in­for­ma­tion about the extent to which the entity is exposed to risk, based on in­for­ma­tion provided in­ter­nally to the entity’s key man­age­ment personnel. These dis­clo­sures include: [IFRS 7.34]

When did the IASB change the IFRS 7 disclosures?

In March 2009 the IASB enhanced the disclosures about fair value and liquidity risks in IFRS 7. The Board also amended IFRS 7 to reflect that a new financial instruments Standard was issued—IFRS 9 Financial Instruments, which related to the classification of financial assets and financial liabilities.

How are redeemable participating shares classified in IFRS 7?

The exception to classify the redeemable participating shares as equity is not extended to the classification of the non-controlling interests in consolidated financial statements [IFRS 7 paragraph AG29A] and accordingly such interests are financial liabilities for which disclosures in accordance with IFRS 7 are required.