IFRS Essentials

IFRS 7 FINANCIAL INSTRUMENTS: DISCLOSURES1

1 INTRODUCTION

IFRS 7 requires disclosures in the notes about financial instruments that fall within the scope of this standard. Some of these disclosures may be made in the notes or alternatively in the statement of financial position or in the statement of comprehensive income.

2 SIGNIFICANCE OF FINANCIAL INSTRUMENTS FOR FINANCIAL POSITION AND PERFORMANCE

The disclosures specified in the section “significance of financial instruments for financial position and performance” of IFRS 7 can be roughly categorized and described as follows:

• The carrying amounts of each of the following categories of financial assets or financial liabilities, as specified in IFRS 9, have to be disclosed either in the statement of financial position or in the notes (IFRS 7.8). In the latter case, it is necessary to provide sufficient information to permit reconciliation to the line items presented in the statement of financial position (IFRS 7.6).

• Financial assets measured at amortized cost.
• Financial assets measured at fair value through other comprehensive income.
• Financial assets measured at fair value through profit or loss, showing separately:
  • those designated as such upon initial recognition, and
  • those mandatorily measured at fair value according to IFRS 9.
• Financial liabilities measured at amortized cost.
• Financial liabilities at fair value through profit or loss, showing separately:
  • those designated as such upon initial recognition, and
  • those ...