IFRS 7

Question 1

Disclosure requirements

Answer 1

1. information about the significance of financial instruments.
2. information about the nature and extent of risks arising from financial instruments

Question 2

qualitative disclosures

Answer 2

risk exposures for each type of financial instrument

management’s objectives, policies, and processes for managing those risks

changes from the prior period

Question 3

Credit risk

Answer 3

the risk that one party to a financial instrument will cause a loss for the other party by failing to pay for its obligation

Question 4

Liquidity risk

Answer 4

the risk that an entity will have difficulties in paying its financial liabilities.

Question 5

Market risk

Answer 5

the risk that the fair value or cash flows of a financial instrument will fluctuate due to changes in market prices.