IFRS 7

Question 1

What is the structure of IFRS 7?

Answer 1

• Classes of financial instruments and level of disclosure
• Significance of financial instruments for financial position and performance
• Statement of financial position
• Statement of comprehensive income
• Nature and extent of risks arising from financial instruments
• Quantitative disclosures

Question 2

What is considered under the heading of Financial position in IFRS 7?

Answer 2

• Categories of financial assets and financial liabilities
• Financial assets or financial liabilities at fair value through profit or loss
• Reclassification
• Derecognition
• Collateral
• Allowance account for credit losses
• Compound financial instruments with multiple embedded derivatives
• Defaults and breaches

Question 3

What do we consider under the heading of Comprehensive Income in IFRS 7?

Answer 3

• Items of income, expense, gains or losses

Question 4

What are the “Other disclosures” in IFRS 7?

Answer 4

• Accounting policies
  Hedge accounting
  Fair value

Question 5

What are the quantitative disclosures in IFRS 7?

Answer 5

• Credit risk
• Liquidity risk
• Market risk

Question 6

How do we split our consideration of the transfer of financial assets?

Answer 6

Those that are or are not derecognised in their entirety