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 |
September 26, 2019 |
Amended by Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7) |
The amendments are designed to support the provision of useful financial information by companies during the period of uncertainty arising from the phasing out of interest-rate benchmarks such as IBORs. They (i) modify some specific hedge accounting requirements to provide relief from potential effects of the uncertainty caused by the IBOR reform; and (ii) require companies to provide additional information to investors about their hedging relationships which are directly affected by these uncertainties. The amendments are effective for annual periods beginning on or after January 1, 2020. Earlier application is permitted. |
November 2019 |
N/A |
Update to the Basis of Conclusions material |
The Basis for Conclusions issued by the International Accounting Standards Board (IASB) in August 2005 that accompanies, but is not part of, IFRS 7 has been added. The Basis for Conclusions includes amendments made subsequently by the IASB for amendments for Interest Rate Benchmark Reform - Phase I. |
April 2020 |
August 27, 2020
|
Amended by Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16). |
The amendments provide temporary exceptions from applying specific hedge accounting requirements in IFRS 9 and IAS 39 to all hedging relationships directly affected by interest rate benchmark reform. In addition, the amendments to IFRS 7 provide specific disclosure requirements regarding uncertainty arising from interest rate benchmark reform. The amendments are effective for annual periods beginning on or after January 1, 2020. Earlier application is permitted. |
October 2020 |
December 1, 2020 |
Updates to the Basis of Conclusions material |
On December 1, 2020 the amendments made to the Basis for Conclusions as a result of Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) were added to Part I of the CPA Canada Handbook – Accounting. |
December 2020 |
August 1, 2023 |
Supplier Finance Arrangements (amendments to IAS 7 and IFRS 7) |
The amended disclosure requirements enhanced the transparency of supplier finance arrangements and their effects on a company’s liabilities, cash flows and exposure to liquidity risk. The amendments to IAS 7 are effective for annual periods beginning on or after January 1, 2024 with earlier application permitted, and the amendments to IFRS 7 when the amendments to IAS 7 are applied. There is a certain amount of transition relief provided, including relief regarding comparative information and interim period information. |
August 2023 |
Notes
- For further details of relevant developments prior to this, please refer to our Deloitte Global section.
- 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.
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)