IFRS 7 — Improved disclosures about financial instruments


In September 2008, the IASB noted that recent market conditions had led to requests by several parties to enhance disclosures about fair values. Whilst some of the recommendations were to be addressed in the long-term fair value measurement project, the Board determined some short-term improvements in response to the credit crisis could be made:

  • Clarifying the fair value hierarchy in IFRS 7 Financial Instruments: Disclosures
  • Providing more direction on the form of the fair value disclosures, including references to a quantitative tabular format for disclosures
  • Requiring a reconciliation from period to period for fair value measurements using significant unobservable inputs.


Current status of the project

This project has been completed. The IASB issued Improving Disclosures about Financial Instruments (Amendments to IFRS 7) on 5 March 2009.

Subsequently, the IASB undertook a project to amend IFRS 1 First-time Adoption of International Financial Reporting Standards to allow first-time adopters the same transition provisions that the amendments provide to current IFRS preparers.


Project milestones

September 2008 Project added to the IASB's agenda
15 October 2008 Exposure Draft Improving Disclosures about Financial Instruments (Proposed amendments to IFRS 7) published Comment deadline 15 December 2008
5 March 2009 Improving Disclosures about Financial Instruments (Amendments to IFRS 7) issued
Effective for annual periods beginning on or after 1 January 2009

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