IFRS 7 Complete Maturity analysis disclosure

IFRS 7 Complete Maturity analysis disclosure – IFRS 7 requires certain disclosures to be presented by category of an instrument based on the IFRS 9 recognition and measurement categories of financial instruments.

Certain other disclosures are required by class of financial instrument. For those disclosures an entity must group its financial instruments into classes of similar instruments as appropriate to the nature of the information presented. [IFRS 7 6]

The two main categories of disclosures required by IFRS 7 are:

  1. information about the significance of financial instruments [IFRS 7 7 – 30]
  2. information about the nature and extent of risks arising from financial instruments [IFRS 7 31 – 42]

So IFRS 7 bets … Read more

Hold to collect

The objective of the ‘hold to collect’ business model is to hold financial assets to collect their contractual cash flows, rather than to selling the assets

Other business models

Other business models are all those that do not meet the ‘hold to collect’ or ‘hold to collect and sell’ criteria. Like realising cash flows through sale

Fair value through profit or loss

Financial assets measured at fair value through profit or loss 2. This is part of the classification of financial assets, representing the remaining or designated class of financial assets.

Financial assets example

Financial assets example are a.o. loans and receivables, financial assets at fair value through profit or loss, derivatives designated as hedging instruments

Equity instrument

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities, also called shares

Regular way purchase or sale

Regular way purchase or sale is a purchase or sale of a financial asset under a contract whose terms require delivery of the asset within a market related time

Transaction costs

Transaction costs are of importance in IFRS because they are or are not included in the carrying value at initial recognition of assets, liabilities and equity.

Amortised Cost

Financial assets and liabilities measured at amortised costs minus the principal repayments, plus or minus the cumulative amortisation using the effective interest method.

Fair value through other comprehensive income

Financial assets measured at fair value through other comprehensive income. This is part of the classification of financial assets.