IFRS 7, titled ''Financial Instruments: Disclosures'', is an
International Financial Reporting Standard (IFRS) published by the
International Accounting Standards Board
The International Accounting Standards Board (IASB) is the independent accounting standard-setting body of the IFRS Foundation.
The IASB was founded on April 1, 2001, as the successor to the International Accounting Standards Committee (IASC). ...
(IASB). It requires
entities
An entity is something that exists as itself, as a subject or as an object, actually or potentially, concretely or abstractly, physically or not. It need not be of material existence. In particular, abstractions and legal fictions are usually ...
to provide certain
disclosures regarding
financial instrument
Financial instruments are monetary contracts between parties. They can be created, traded, modified and settled. They can be cash (currency), evidence of an ownership interest in an entity or a contractual right to receive or deliver in the form ...
s in their financial statements.
The standard was originally issued in August 2005 and became applicable on 1 January 2007, superseding the earlier standard
IAS 30 IAS may refer to:
Science
* Institute for Advanced Study, in Princeton, New Jersey, United States
* Image Analysis & Stereology, the official journal of the International Society for Stereology & Image Analysis.
* Iowa Archeological Society, Uni ...
, ''Disclosures in the Financial Statements of Banks and Similar Financial Institutions'', and replacing the disclosure requirements of
IAS 32 IAS may refer to:
Science
* Institute for Advanced Study, in Princeton, New Jersey, United States
* Image Analysis & Stereology, the official journal of the International Society for Stereology & Image Analysis.
* Iowa Archeological Society, Uni ...
, previously titled ''Financial Instruments: Disclosure and Presentation''.
Disclosure requirements
IFRS 7 requires entities to provide disclosures about:
*The significance of financial instruments for the entity's financial position and performance.
*The carrying amount of each class of financial instrument on the
statement of financial position
In financial accounting, a balance sheet (also known as statement of financial position or statement of financial condition) is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business ...
or within the notes.
*Items of income, expense, gains and losses for each class of financial instrument, either in the
statement of profit or loss and other comprehensive income or within the notes.
*The nature and extent of risks (
credit risk,