IFRS 7 Comprehensive Risk disclosures

IFRS 7 Comprehensive Risk disclosures – Management should disclose information that enables users of its financial statements to evaluate the nature and extent of risks arising from financial instruments to which the entity is exposed at the end of the reporting period [IFRS 7 31]. IFRS 7 Comprehensive Risk disclosures

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 (previously the IAS 39 measurement categories). IFRS 7 Comprehensive Risk disclosures

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 … Read more

Main FS Statements Insurance contracts

Main FS Statements Insurance contracts – These examples of the main Financial Statements statements demonstrate the requirements in respect of presentation and disclosure according to IFRS 17 Insurance contracts. They also include Main FS Statements Insurance contracts the requirements (introduced or amended) in respect of presentation and disclosure according to IFRS 9 Financial instruments and IFRS 7 Financial instruments: Disclosures.

It is prepared for illustrative purposes only and should be used in conjunction with the relevant financial reporting standards and any other reporting pronouncements and legislation applicable in specific jurisdictions. Main FS Statements Insurance contracts

Presentation of insurance service result Main FS Statements Insurance contracts

 

IFRS 17 83,
85,
B120 – B127

Clarifications:

Insurance revenue reflects the consideration to which the insurer

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Uniform accounting policies for consolidation

Uniform accounting policies for consolidation – For IFRS, the parent company and its subsidiaries must have and apply uniform (i.e. the same) accounting policies. If not, appropriate adjustments are made when preparing the consolidated financial statements to ensure conformity. The extent and complexity of this exercise depend on the nature of the group’s activities and the basis of preparation of individual group entities’ financial statements. Uniform accounting policies for consolidation

Uniform accounting policies for consolidation Many times overlooked is that not only subsidiaries need to apply the same accounting policies as the parent that consolidates those subsidiaries. Also (other) unconsolidated investments accounted for at the equity method should determine the amount of equity applying those same accounting policies.

In carrying out this exercise a … Read more

Trading in securities and loans

Trading in securities and loans – IAS 7 14 includes a number of examples of operating cash flows, including cash Trading in securities and loans receipts and payments from contracts held for dealing or trading purposes. IAS 7 15 notes that when an entity holds securities and loans for dealing or trading purposes, those items are similar to inventory acquired specifically for resale. As a result, the cash flows arising from the purchase and sale of dealing or trading securities are classified within operating activities.

Consistent with this approach, IAS 7.16(c) and (d) require cash flows which relate to the acquisition or sale of equity or debt instruments of other entities (including interests in joint ventures) to be classified as arising from investing activities, unless … Read more

Fair value disclosures

Fair value disclosures  – The below illustrative disclosures are limited to financial assets and liabilities measured in accordance with IFRS 9. In many cases, insurers may have other balances that require fair value measurement disclosures in accordance with IFRS 13.

Fair value hierarchy Fair value disclosures

IFRS Link

Explanation Fair value disclosures

IFRS 13 73

The insurer categorises a financial asset or a financial liability measured at fair value at the same level of fair value hierarchy as the lowest-level input that is significant to the entire measurement.

The insurer ranks fair value measurements based on the type of inputs, as follows:

IFRS 13 76,

IFRS 13 91(a)

Level 1: The fair value of financial instruments traded in active

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