Some entities may want to present some of the information required by IFRS 7, such as the nature and extent of risks arising from financial instruments and the entity’s approach to managing those risks, alongside the financial statements in a separate management commentary or business review.
This is only permissible for disclosures requires by IFRS 7 32 – 41 (that is, nature and risk arising from financial instruments) where the information is incorporated by cross-reference from the financial statements and is made available to users of the financial statements on the same terms as the financial statements and at the same time. [IFRS 7 B6]
An entity has to carefully decide, in light of its own circumstances, how much detail it wants to provide, how much emphasis it wants to place on different aspects of the disclosure requirements and how much aggregation it wants to undertake to satisfy IFRSs’ requirements.
Obviously, a significant amount of judgement is required to display the overall picture without combining information with different characteristics. A balance has to be maintained between providing excessive detail that may not assist user of financial statements by including it amongst a large amount of insignificant detail. Similarly, an entity should not disclose information that is so aggregated that it obscures important differences between individual transaction or associated risk. [IFRS 7 B3]