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IFRS 7 — Financial Instruments: Disclosures

Effective date:

First effective as Canadian GAAP under Part I for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011, except for subsequent amendments.  Earlier application of Part I was permitted.

Published by the IASB:

August 2005

Included in Part I of CPA Canada Handbook:

January 2010

Overview

IFRS 7 Financial Instruments: Disclosures requires disclosure of information about the significance of financial instruments to an entity, and the nature and extent of risks arising from those financial instruments, both in qualitative and quantitative terms. Specific disclosures are required in relation to transferred financial assets and a number of other matters.

 

History of IFRS 7

The following table shows the history of this standard subsequent to the adoption of IFRS in Canada.

Date1

Development

Comments

Included in Part I of CPA Canada Handbook2

January 2010

Part I of the CPA Canada Handbook issued

Effective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. Earlier application is permitted.

January 2010

May 6, 2010

Amended by Improvements to IFRSs (clarification of disclosures)

Paragraph 32A has been added to emphasize the interaction between qualitative and quantitative disclosures about the nature and extent of risks arising from financial instruments. Paragraph 34 has been amended to clarify that only material disclosures of quantitative financial information are required. Paragraphs 36-38 have been amended to revise the credit risk disclosures required for financial assets, including collateral held and renegotiated financial assets.

These amendments are effective for annual periods beginning on or after January 1, 2011. Earlier application is permitted.

July 2010

October 7, 2010

 

Disclosures – Transfers of Financial Assets (Amendments to IFRS 7 Financial instruments: Disclosures) issued

 

Amendments regarding Disclosures — Transfers of Financial Assets have been made to this standard to enhance the disclosure requirements for transfers of financial assets that result in derecognition.

These amendments are effective for annual periods beginning on or after July 1, 2011. Earlier application is permitted. An entity need not apply the disclosures for any period presented that begins before the date of initial application of the amendments.

January 2011

December 16, 2011

 

Disclosures — Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7) issued

 

Paragraphs 13A-13F and B40-B53 have been added to require disclosures that will enable users of financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with an entity's recognized financial assets and recognized financial liabilities, on the entity's financial position. An entity provides information including the gross amounts subject to rights of set-off, amounts set off in accordance with the offsetting criteria, amounts of financial instruments subject to master netting arrangements or similar agreements, and the related net amounts to meet the disclosure objective.

These amendments are effective for annual periods beginning on or after January 1, 2013 and interim periods within those annual periods.

May 2012

December 16, 2011

 

Mandatory Effective Date and Transition Disclosures (Amendments to IFRS 9 and IFRS 7) issued

 

Disclosures that illustrate the effect of adopting IFRS 9 Financial Instruments have been added to IFRS 7. Paragraph 44I has been amended to include disclosures about financial liabilities. Paragraphs 44S-44W were added to provide additional detail if the entity elects to apply the transition relief available on early adoption of IFRS 9.

May 2012

November 19, 2013

 

IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39) issued, implementing additional disclosures (and consequential amendments) resulting from the introduction of the hedge accounting chapter in IFRS 9

 

IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39 Financial instruments: Recognition and Measurement) issued, implementing additional disclosures (and consequential amendments) resulting from the introduction of the hedge accounting chapter in IFRS 9.

These modifications require, as part of IFRS 7, additional disclosures about an entity's risk management strategy and the effect of hedge accounting on the financial statements.

Effective when IFRS 9 is first applied.

February 2014

September 25, 2014

 

Amended by Improvements to IFRSs 2014 (servicing contracts and applicability of the amendments to IFRS 7 to condensed interim financial statements)

 

The amendments clarify guidance on servicing contracts and the applicability of the amendments to IFRS 7 regarding offsetting financial assets and financial liabilities, issued by the IASB in December 2011, to interim financial statements.

The amendments are effective for annual periods beginning on or after January 1, 2016. Earlier application is permitted.

February 2015

Notes

  1. For further details of relevant developments prior to this, please refer to our Deloitte Global section.
  2. Newly issued, amended or revised IFRSs are part of Canadian GAAP only after they are approved by the Accounting Standards Board in accordance with its due process.
The above summary does not include details of consequential amendments made as the result of other projects.

Related Interpretations

  • None

Related IFRIC Agenda Rejection Notices

The rejection notices are available in our Deloitte Global section.

  • IFRS 7 — Presentation of ‘net finance costs’ on the face of the income statement (November 2006)

Amendments under consideration

  • None

Correction list for hyphenation

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