Financial instruments

Financial instruments are important across all reporting entities and even more so in the financial services industry (banks, insurance companies, investment vehicles). But is took until 1995 when IAS 32 (now revised to Financial instruments: Presentation) was issued!

In 1999 IAS 39 was issued for recognition and measurement at a time that was known for increasingly volatile financial markets and more widespread use of innovative and complex financial products.

Various revisions have been made, IAS 32 was partly replaced by … Continue reading

Management of credit risk for financial instruments

Financial institutions (banks, insurance companies, investment entities) should have a management process in place to identify, measure, monitor and control credit risk as well as to determine that they hold adequate capital against these risks and that they are adequately compensated for risks incurred.

The sound practices should specifically address the following areas:

  1. establishing an appropriate credit risk environment;
  2. operating under a sound credit-granting process;
  3. maintaining an appropriate credit administration, measurement, and monitoring process; and
  4. ensuring adequate
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Presentation and disclosure of crypto-assets

The disclosure by holders of crypto-assets will be driven by the disclosure requirements of the IFRS standards that are applied in accounting for them. This narrative illustrates selected disclosure requirements for each classification and measurement in more detail, as well as the general IAS 1 requirements that could be relevant to the holder of crypto-assets.

Holders of crypto-assets need to consider materiality when determining what disclosures are required in their specific circumstances, as well as when to aggregate amounts on … Continue reading

IFRS 7 Disclosures for IFRS 9 Financial instruments

This is a high level summary of the disclosure requirements added to IFRS 7 Financial Instruments: Disclosures that accompanies the impairment model in IFRS 9 Financial Instruments.

Credit risk management practices

An entity is required to disclose:

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