IASB issues IFRS 7 on financial instruments disclosures
18 Aug 2005
The IASB has issued IFRS 7 'Financial Instruments: Disclosures'.
The standard:
- Adds certain new disclosures about financial instruments to those currently required by IAS 32
- Replaces the disclosures now required by IAS 30;
- Puts all of those financial instruments disclosures together in a new combined standard. The remaining parts of IAS 32, which will be renamed Financial Instruments: Presentation, deal only with presentation matters, including classifying instruments as debt or equity, compound financial instruments, offsetting, and treasury shares.
- Information about the significance of financial instruments
- Information about the nature and extent of risks arising from financial instruments.
An appendix of mandatory application guidance is part of the standard. There is also an appendix of non-mandatory implementation guidance that describes how an entity might provide the disclosures required by IFRS 7.
IFRS 7 applies to all entities and is effective for annual periods beginning on or after 1 January 2007, with earlier application encouraged. Early appliers are given some relief with respect to comparative prior period disclosures. Both IAS 30 and the disclosure requirements of IAS 32 are withdrawn. We have prepared a Summary of IFRS 7. Click for IASB Press Release (PDF 57k).
