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Chapter 34 Financial Instruments: Disclosures (IFRS 7)
34.5.3 Derecognition of Statement of Financial Position items. All transfers of assets not qualifying for derecognition must be identified as follows: ■ ■ ■
the nature of assets transferred that do not qualify for derecognition (for example, certain special-purpose vehicles for asset-backed securities); the nature of the risks/rewards still exposed; and the carrying amount of assets still recognized—disclose the original total and associated liabilities.
34.5.4 Collateral related to items on the Statement of Financial Position. The following must be disclosed: ■ ■
the carrying amount of financial assets pledged as collateral for liabilities or contingent liabilities and the terms and conditions relating to the pledge; and for financial assets received as a collateral that are available to be resold or repledged in the absence of default: – the fair value of collateral held if available to be sold or repledged (even if the owner does not default); – the fair value of collateral sold or repledged (whether there is any obligation to return the collateral at the contract maturity); and – terms and conditions for the use of collateral.
34.5.5 Allowance for credit losses on the Statement of Financial Position. Reconciliation of changes during the current period should be provided for all impaired financial assets, by class of asset.
34.5.6 Embedded options in the Statement of Financial Position (structured liabilities with equity components using interdependent, multiple embedded derivatives). Disclose the existence of features and interdependencies for all financial liabilities with multiple embedded derivatives.
34.5.7 Loans payable in default. For loans payable, where loans are in default or conditions have been breached, disclose the following: ■ ■ ■
the carrying amount of such liabilities; details related to the principal, interest, sinking fund, or redemption terms; and any remedy of default or renegotiation of loan terms that had taken place prior to the issue of the financial statements.
34.5.8 Hedge accounting in the financial statements. The types of hedges and risks related to hedging activities must be disclosed as follows (table 34.6).
34.5.9 Fair value disclosure in the financial statements (see table 34.7). The fair value information required depends on how the financial instrument is measured in the Statement of Financial Position.
34.5.10 Nature and extent of risks arising from financial instruments: qualitative disclosures. Qualitative disclosures (the nature of risks and how they arose) do not necessarily have to be broken down by individual financial instruments. However, each type of risk arising from all financial assets and financial liabilities must be discussed, as follows: ■ ■
the exposure to risk and how risks arise; the objectives, policies, and processes to manage risk, as well as any changes in risk management processes from the previous period; and