Reminder about upcoming comment deadline
11 Dec 2008
We remind you that comments are due on 15 December 2008 on an exposure draft of proposed amendments to IFRS 7: 'Improving Disclosures about Financial Instruments', which was issued on 15 October 2008. The exposure draft proposes the following changes to IFRS 7.
Fair value disclosures
- Introduction of a three level hierarchy when disclosing fair values (comparable to the US SFAS 157 hierarchy)
- Quoted prices in active markets for the same instrument (without modification or repackaging)
- Quoted prices in active markets for similar assets or liabilities or other valuation techniques for which all significant inputs* are based on observable market data
- Valuation techniques for which any significant input is not based on observable market data
- Reconciliations of balances for fair values measured without using observable market inputs
- Reconciliations of movements between the levels (including reasons)
Liquidity risk disclosures
- Clarification of the scope of which instruments are to be included
- Disclosure of liquidity risk for derivative financial liabilities based on risk management of the entity
- Disclosure of expected remaining maturities of non-derivative financial liabilities if the entity manages risk in that way
- Enhanced relationship between quantitative and qualitative disclosures of liquidity risk
Click for more information on the project.