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International Financial

Reporting Standard 7 (IFRS 7),


Financial Instruments: Disclosure
By STEPHEN SPECTOR, MA, FCGA

This article is part of a series by Brian & Laura Friedrich and Stephen Spector on
International Financial Reporting Standards published on PD Net.
Snapshot
History
Overview of IFRS 7
Differences from
Canadian GAAP

Snapshot
Latest revision

December, 2003

Subsequent amendments

2007, 2008, and 2009 (to reflect changes


in a variety of standards)

Effective date per IASB

fiscal periods beginning on or after


January 1, 2005

Effective date per Canadian Standards

fiscal periods beginning on or after


October 1, 20071

Outstanding Exposure Drafts and


issues under consideration

The IASB has a project underway to


revise accounting for financial
instruments. Changes to disclosure will
follow.

History
The International Accounting Standards Boards predecessor body, the International
Accounting Standards Committee (IASC), began its work on financial instruments in
1988 and the subject has remained on the active international standard-setting agenda
ever since. Unable to reach consensus on measurement issues, the IASC limited its
initial standard to aspects of presentation and disclosure when it released International
Accounting Standard 32 (IAS 32) Financial Instruments: Disclosure and Presentation
in 1995. After a further period of effort, IAS 39 Financial Instruments: Recognition
and Measurement was issued in 1999 to deal with the matters not covered in IAS 32.

CGA-Canada 2009

In 1997, the U.S. Securities and Exchange Commission (SEC) issued Financial
Reporting Release No. 48, Disclosure of Accounting Policies for Derivative Financial
Instruments and Derivative Commodity Instruments and Disclosure of Quantitative
and Qualitative Information about Market Risk Inherent in Derivative Financial
1

Technically, IFRS 7 will not be required until fiscal periods beginning on or after
January 1, 2011. However, except for matters noted at the end of this article,
Handbook section 3862 and IFRS 7 are the same.

Instruments, Other Financial Instruments, and Derivative Commodity Instruments (FRR 48).
FRR 48 required that companies disclose both qualitative and quantitative market risk
information for risks of loss arising from adverse changes in interest rates, foreign currency
rates, commodity prices, and equity prices.
Specifically, FRR 48 required that firms disclose two types of information about market risks:
qualitative and quantitative information. Qualitative information included the identification of
primary market risks (i.e., interest rate, foreign exchange, commodity, and other market risks
such as equity price risks) and the particular markets in which the company was exposed. Firms
also had to discuss their derivative accounting policies, risk management goals, objectives,
and controls. Finally, firms were required to reveal how risk was managed in general and the
specific types of instruments used. To disclose quantitative information about their market
risks, firms had to select among three disclosure formats (tabular, sensitivity analysis, and
value at risk [VaR]) and three measurement bases (cash flows, earnings, or fair values).
Meanwhile, the International Accounting Standards Board (IASB) succeeded the IASC in
2001. In 2002, in response to practice issues identified by audit firms, national standardsetters, regulators (especially the SEC and its experience with FRR 48) and others, and issues
identified in the IAS 39 implementation guidance process, the IASB proposed changes to
both IAS 32 and 39. It issued revised versions of those standards in December 2003. Further
deliberations resulted in several amendments to those standards, and in August 2005, the
IASB expanded the disclosure aspects of IAS 32 and IAS 39 by issuing International
Financial Reporting Standard 7 (IFRS 7) Financial Instruments: Disclosures. Based on the
experience gained by the SEC, the IASB incorporated those requirements into IFRS 7.

Overview of IFRS 7
Objective
The objective of IFRS 7 is focused on financial instrument disclosures, and is based on the
notion that entities should provide disclosures in their financial statements that enable users to
evaluate the significance of financial instruments for the entitys financial position and
performance. Further, IFRS 7 places emphasis on disclosures about risks associated with both
recognized and unrecognized financial instruments and how these risks are managed.
The principles in IFRS 7 Financial Instruments: Disclosures complement the principles for
recognizing and measuring financial assets and financial liabilities in IAS 39 Financial
Instruments: Recognition and Measurement, and for presentation of information about them
in IAS 32 Financial Instruments: Presentation.
As with IAS 32, IFRS 7 is different from most other Standards is in its Appendixes. IFRS 7
points out that the Appendixes are an integral part of the Standard.

Scope
IFRS 7 requires disclosure of information that enables users of an entitys financial statements
to evaluate the significance of financial instruments for its financial position and performance
(7). IFRS 7 also requires that the disclosure be more than just the category of financial
instrument (8); it must also reveal data about classes of financial instruments within the
categories. IFRS 7 further states that an entity has to group financial instruments into classes
that are appropriate to the nature of the information disclosed and that take into account the
characteristics of those financial instruments. Therefore, class definition is entity-specific. It
also requires that the entity provide sufficient information to permit reconciliation to the line
items presented in the balance sheet (6).

International Financial Reporting Standard 7 (IFRS 7), Financial Instruments: Disclosure 2

IFRS 7 applies to recognized and unrecognized financial instruments (4). Recognized


financial instruments include financial assets and financial liabilities that are within the scope
of IAS 39. Unrecognized financial instruments include some financial instruments that,
although outside the scope of IAS 39, are within the scope of IFRS 7. Finally, IFRS 7 applies
to contracts to buy or sell a non-financial item that are within the scope of paragraphs 5 to 7
of IAS 39 (5).
IFRS 7 must be applied by all entities, except where it specifically defers to another Standard
and/or a different accounting treatment (3). It would not apply, for instance, to interests in
subsidiaries, associates or joint ventures that are accounted for in accordance with IAS 27
Consolidated and Separate Financial Statements, IAS 28 Investments in Associates or IAS 31
Interests in Joint Ventures, respectively. Likewise, IFRS 7 does not apply to employers rights
and obligations under employee benefit plans to which IAS 19 Employee Benefits applies, nor
does it apply to insurance contracts as defined in IFRS 4 Insurance Contracts or financial
instruments that are within the scope of IFRS 4, although it does apply to derivatives that are
embedded in insurance contracts if IAS 39 requires the entity to account for them separately.
Finally, IFRS 7 does not apply to financial instruments, contracts, and obligations under
share-based payment transactions to which IFRS 2 Share-based Payment applies, except for
limited exceptions that are deemed within the scope of IAS 39, not does it apply to
instruments that are required to be classified as equity instruments in accordance with
paragraphs 16A and 16B or paragraphs 16C and 16D of IAS 32 (puttable instruments).

Highlights of the standard


Definitions
Unlike IAS 32 and IAS 39, IFRS 7 does not provide definitions within its numbered
paragraphs. Instead, Appendix A serves that purpose.
Credit risk: the risk that one party to a financial instrument will cause a financial loss for

the other party by failing to discharge an obligation.


Liquidity risk: the risk that an entity will encounter difficulty in meeting obligations

associated with financial liabilities that are settled by delivery of cash or another financial
instrument.
Market risk: the risk that the fair value or future cash flows of a financial instrument will

fluctuate because of changes in market prices. Market risk comprises three types of risk:
currency risk, interest rate risk and other price risk.
Currency risk: the risk that the fair value or future cash flows of a financial instrument will

fluctuate because of changes in foreign exchange rates.


Interest rate risk: the risk that the fair value or future cash flows of a financial instrument

will fluctuate because of changes in market interest rates.


Other price risk: the risk that the fair value or future cash flows of a financial instrument

will fluctuate because of changes in market prices (other than those arising from interest
rate risk or currency risk), whether those changes are caused by factors specific to the
individual financial instrument or its issuer, or factors affecting all similar financial
instruments traded in the market.
Moreover, IFRS 7 does recognize the linked nature of the three financial instruments
standards. Besides the specific definitions of key terms, Appendix A refers the user to IAS 32
and IAS 39 for a shopping list of definitions, noting the following terms are defined in
paragraph 11 of IAS 32 or paragraph 9 of IAS 39 and are used in the IFRS with the meaning
specified in IAS 32 and IAS 39.

International Financial Reporting Standard 7 (IFRS 7), Financial Instruments: Disclosure 3

Categories of financial assets and financial liabilities


IFRS 7 requires an entity to disclose either on the balance sheet or in the notes, the carrying
amounts of the categories of financial instruments defined in IAS 39 (8):
financial assets and liabilities (separately) at fair value through profit or loss, showing

separately those designated as such upon initial recognition and those classified as held for
trading in accordance with IAS 39
held-to-maturity investments
loans and receivables
available-for-sale financial assets, and
financial liabilities measured at amortized cost

Where loans and receivables are designated as held for trading, paragraph 9 requires
disclosure of the breakdown of the changes in the fair value of these items. Typically, these
changes arise due to changes in the risk-free market rate and/or changes in the credit risk of
the issuer. For example, a change in the fair value of a bond may be due to changes in the
prime interest rate and/or it may be due to changes in the credit worthiness of the issuing
entity. If an entity designates their own liabilities (e.g., bonds reacquired in open market
transactions) as held for trading, they will be required to disclose the impact that movements
in their own credit quality had on the value of those bonds.
Reclassification
If an entity reclassifies a financial asset in accordance with paragraphs 5154 of IAS 39 as
one measured at cost or amortised cost rather than at fair value, or at fair value rather than at
cost or amortised cost, it must disclose the amount reclassified into and out of each category
and the reason for that reclassification (12).
If an entity reclassifies (12A) a financial asset out of the fair value through profit or loss
category in accordance with paragraph 50B or 50D of IAS 39 or out of the available-for-sale
category in accordance with paragraph 50E of IAS 39, it shall disclose:
the amount reclassified into and out of each category
for each reporting period until derecognition, the carrying amounts and fair values of all

financial assets that have been reclassified in the current and previous reporting periods
if a financial asset was reclassified in accordance with paragraph 50B, the rare situation,

and the facts and circumstances indicating that the situation was rare
for the reporting period when the financial asset was reclassified, the fair value gain or loss

on the financial asset recognised in profit or loss or other comprehensive income in that
reporting period and in the previous reporting period
for each reporting period following the reclassification (including the reporting period in

which the financial asset was reclassified) until derecognition of the financial asset, the fair
value gain or loss that would have been recognised in profit or loss or other comprehensive
income if the financial asset had not been reclassified, and the gain, loss, income and
expense recognised in profit or loss, and
the effective interest rate and estimated amounts of cash flows the entity expects to recover,

as at the date of reclassification of the financial asset.


Note that IAS 39 is fairly restrictive when it comes to reclassifications.

International Financial Reporting Standard 7 (IFRS 7), Financial Instruments: Disclosure 4

Fair value
With limited exceptions, IFRS 7 requires that an entity disclose the fair value of that class of
assets and liabilities in a way that permits the fair value to be compared with the carrying
amount. In disclosing fair values, the entity is permitted to group financial assets and financial
liabilities into classes, but it can offset them only to the extent that their carrying amounts are
offset in the statement of financial position. Furthermore, the entity must disclose for each
class of financial instruments the methods and, when a valuation technique is used, the
assumptions applied in determining fair values of each class of financial assets or financial
liabilities.
In order to facilitate the determination of fair values, the IASB has adopted the US Financial
Accounting Standards Boards fair value hierarchy (as presented in SFAS 157). The fair value
hierarchy (27A) has the following levels:
quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
inputs other than quoted prices included within Level 1 that are observable for the asset or

liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices) (Level 2)
inputs for the asset or liability that are not based on observable market data (unobservable

inputs) (Level 3)
Based on the hierarchy, paragraph 27B of IFRS 7 requires that an entity disclose for each
class of financial instruments in tabular format unless another format is more appropriate:
the level in the fair value hierarchy into which the fair value measurements are categorized

in their entirety, segregating fair value measurements in accordance with the levels defined
in paragraph 27A
any significant transfers between Level 1 and Level 2 of the fair value hierarchy and the

reasons for those transfers


for fair value measurements in Level 3 of the fair value hierarchy, a reconciliation from the

beginning balances to the ending balances, disclosing separately changes during the period
attributable to the following:
o

o
o

total gains or losses for the period recognized in profit or loss, and a description of
where they are presented in the statement of comprehensive income or the separate
income statement (if presented)
total gains or losses recognised in other comprehensive income
purchases, sales, issues and settlements (each type of movement disclosed separately),
and
transfers into or out of Level 3 and the reasons for those transfers

Paragraph 29 of IFRS addresses circumstances where disclosures of fair value are not required:
when the carrying amount is a reasonable approximation of fair value, for example, for

financial instruments such as short-term trade receivables and payables


for an investment in equity instruments that do not have a quoted market price in an active

market, or derivatives linked to such equity instruments, that is measured at cost in


accordance with IAS 39 because its fair value cannot be measured reliably, or
for a contract containing a discretionary participation feature (as described in IFRS 4) if the

fair value of that feature cannot be measured reliably

International Financial Reporting Standard 7 (IFRS 7), Financial Instruments: Disclosure 5

Additional disclosures
If an entity transfers financial assets in such a way that part or all of the financial assets do

not qualify for derecognition, the entity shall disclose for each class of such financial assets
the nature of the assets and the nature of the risks and rewards of ownership to which the
entity remains exposed (13).
An entity shall disclose the carrying amount of financial assets it has pledged as collateral

for liabilities or contingent liabilities, including amounts that have been reclassified in
accordance with paragraph 37(a) of IAS 39 and the terms and conditions relating to its
pledge (14).
When an entity holds collateral (of financial or non-financial assets) and is permitted to sell

or repledge the collateral in the absence of default by the owner of the collateral, it shall
disclose the fair value of the collateral held; the fair value of any such collateral sold or
repledged, and whether the entity has an obligation to return it; and the terms and
conditions associated with its use of the collateral (15).
When financial assets are impaired by credit losses and an entity records the impairment in

a separate account (e.g., an allowance account used to record individual impairments or a


similar account used to record a collective impairment of assets) rather than directly
reducing the carrying amount of the asset, it shall disclose a reconciliation of changes in
that account during the period for each class of financial assets (16).
If an entity has issued an instrument that contains both a liability and an equity component

and the instrument has multiple embedded derivatives whose values are interdependent
(such as a callable convertible debt instrument), it shall disclose the existence of those
features (17).
For loans payable recognized at the end of the reporting period, an entity shall disclose:

details of any defaults during the period of principal, interest, sinking fund, or redemption
terms of those loans payable; the carrying amount of the loans payable in default at the end
of the reporting period; and whether the default was remedied, or the terms of the loans
payable were renegotiated, before the financial statements were authorized for issue (18).
Items of income, expense, gains or losses
IFRS 7 (20) requires an entity to disclose either2 in the statement of comprehensive income
or in the notes:
net gains or net losses on:
o

financial assets or financial liabilities at fair value through profit or loss, showing
separately those on financial assets or financial liabilities designated as such upon initial
recognition, and those on financial assets or financial liabilities that are classified as held
for trading in accordance with IAS 39
available-for-sale financial assets, showing separately the amount of gain or loss
recognized in other comprehensive income during the period and the amount reclassified
from equity to profit or loss for the period

Note that IFRS 7 implicitly assumes that profit and loss is part of a statement of comprehensive
income. In Canada, net income (profit and loss) typically is reported on its own statement, and
the proverbial bottom line becomes the first item reported on the Statement of Comprehensive
Income. Note also that IAS 1 permits a similar approach: paragraph 81 of IAS 1 stipulates that
an entity is to present all items of income and expense recognized in a period either in a single
statement of comprehensive income, or in two statements: a statement displaying components
of profit or loss (separate income statement) and a second statement beginning with profit or
loss and displaying components of other comprehensive income (statement of comprehensive
income).
International Financial Reporting Standard 7 (IFRS 7), Financial Instruments: Disclosure 6

held-to-maturity investments

loans and receivables, and

financial liabilities measured at amortized cost

total interest income and total interest expense (calculated using the effective interest method)

for financial assets or financial liabilities that are not at fair value through profit or loss
fee income and expense (other than amounts included in determining the effective interest

rate) arising from:


o
o

financial assets or financial liabilities that are not at fair value through profit or loss, and
trust and other fiduciary activities that result in the holding or investing of assets on
behalf of individuals, trusts, retirement benefit plans, and other institutions

interest income on impaired financial assets accrued in accordance with paragraph AG93 of

IAS 39, and


the amount of any impairment loss for each class of financial asset

Other disclosures
Accounting policies
IFRS 7 requires that an entity disclose in the summary of significant accounting policies the
measurement basis (or bases) used in preparing the financial statements and the other
accounting policies used that are relevant to an understanding of the financial statements
(21). These disclosures are also required by paragraph 117 of IAS 1 Presentation of
Financial Statements.
Hedge accounting
For each type of hedge described in IAS 39, an entity must provide a description of each type
of hedge and of the financial instruments designated as hedging instruments, their fair values
at the end of the reporting period, and the nature of the risks being hedged (22). In addition,
an entity must separately disclose the ineffectiveness recognized in profit or loss that arises
from cash flow hedges and hedges of net investments in foreign operations. Furthermore,
IFRS 7 requires that for fair value hedges, an entity disclose gains or losses on the hedging
instrument and on the hedged item attributable to the hedged risk (24).
IFRS 7 specifies that for cash flow hedges (23), the entity must disclose:
the periods when the cash flows are expected to occur and when they are expected to affect

profit or loss
a description of any forecast transaction for which hedge accounting had previously been

used, but which is no longer expected to occur


the amount that was recognised in other comprehensive income during the period
the amount that was reclassified from equity to profit or loss for the period, showing the

amount included in each line item in the statement of comprehensive income, and
the amount that was removed from equity during the period and included in the initial cost

or other carrying amount of a non-financial asset or non-financial liability whose


acquisition or incurrence was a hedged highly probable forecast transaction
Nature and extent of risks arising from financial instruments
IFRS 7 requires that an entity 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 (31). These disclosures must be
both qualitative and quantitative.
International Financial Reporting Standard 7 (IFRS 7), Financial Instruments: Disclosure 7

Qualitative disclosures
For each type of risk (credit risk, liquidity risk and market risk), a qualitative narrative is
required (33). This narrative is intended to:
identify the risk exposures faced related to an organizations financial instruments and how

these risks arise


identify the objectives, policies and processes for managing the risks
identify the objectives, policies, processes and methods used to measure risk, and
describe any changes from the previous reporting period

Quantitative disclosures
For each type of risk, entities must disclose summary quantitative data on risk exposure at
reporting date, based on information provided internally to key management personnel and
any concentrations of risk (34 to 38). Entities must also ensure they disclose information
related to credit risk, liquidity risk and market risk.
Credit risk
An entity must disclose for each class of financial instrument (36):
its maximum exposure to credit risk (i.e., excluding any collateral)
a description of any, collateral held as security (on either a financial asset or liability), and

if non cash collateral was collected during the period, the carrying amount and how the
asset would be used in operations
information on the credit quality of assets that are neither past due nor impaired, and
the carrying amount of financial assets that would have otherwise been past due or

impaired whose terms have been renegotiated


For each financial asset that is past due or impaired, further disclosures are required, as
follows:
an analysis of the age of financial assets that are past due but not impaired, and
an analysis of financial assets that are individually determined to be impaired

Activities that give rise to credit risk include, but are not limited to, granting loans and
receivables, placing deposits, granting financial guarantees, making irrevocable loan
commitments and entering into derivative contracts. Further guidance for determining the
maximum credit exposure in each of these instances is included in Appendix B
paragraph B10.
Liquidity risk
An entity must provide (39) a maturity analysis for non-derivative financial liabilities
showing their remaining contractual maturities and a description of the entitys approach to
managing the inherent liquidity risk. For derivative financial liabilities a maturity analysis
must include the any remaining contractual maturities that are essential for an understanding
of the timing of the cash flows, as well as the entitys approach to managing the inherent
liquidity risk. When preparing the maturity analysis, professional judgment is needed to
determine the appropriate number of time bands (B11 of Appendix B). If a counterparty has
a choice of when an amount is to be paid, the liability is included in the maturity analysis on
the basis of the earliest date on which the entity can be required to pay (B11C of Appendix B).
Similarly, if an entity is committed to make amounts available in instalments, each instalment
is allocated to the earliest period in which the entity can be required to pay. This same principle

International Financial Reporting Standard 7 (IFRS 7), Financial Instruments: Disclosure 8

holds for any issued financial guarantee contracts, the maximum amount of the guarantee is
allocated to the earliest period in which the guarantee could be called (B11C of Appendix B).
Note that when the amount payable is not fixed, the amount disclosed is determined by
reference to conditions existing at the reporting date (B11D of Appendix B). Lastly, the
amounts to be disclosed in the maturity analysis are the contractual undiscounted cash flows.
These amounts will differ from the amounts included in the balance sheet because the balance
sheet amount is based on discounted cash flows (B11D of Appendix B). Paragraph B11F of
Appendix B describes other factors an entity may want to consider when preparing their
liquidity note disclosure, such as committed borrowing facilities (e.g., commercial paper).
Market risk
An entity must (40):
Provide a sensitivity analysis for each type of market risk (currency, interest rate and other

price risk) to which an entity is exposed at the reporting date. This should illustrate how
profit or loss and equity would have been affected by reasonably possible changes in the
relevant risk variable, as well as the methods and assumptions used in preparing such an
analysis.
Disclose any changes in the methods and assumptions from the previous period and the

reasons for such change(s).


Professional judgment is needed when an entity aggregates information to display the overall
risk picture it faces, without combining information with different characteristics related to
risks from significantly different economic environments. If an entity is exposed to only one
type of market risk in only one economic environment, it need not show disaggregated
information (B17 of Appendix B).
An entity is not required to determine what profit or loss for the period would have been if the
relevant risk variable had been different. Instead, the entity must disclose the effect on profit
or loss and equity, assuming that a reasonably possible change in the relevant risk variable
had occurred at the balance sheet date and had been applied to the risk exposures in existence
at that date. Likewise, the entity is not required to disclose the effect on profit or loss and
equity for each change within a range of reasonably possible changes of the relevant risk
variable. Disclosure of the effects of the changes at the limits of the reasonably possible range
would be sufficient (B18 of Appendix B). A reasonably possible change should not include
remote or worst case scenarios or stress tests (B19 of Appendix B).
The goal of the sensitivity analysis is to show the effects of changes that are considered to be
reasonably possible over the period until the next reporting date. In determining what a
reasonably possible change in a relevant risk variable is, an entity must consider the economic
environment in which it operates (B19 of Appendix B).
Alternative approaches
IFRS 7 recognizes that some entities approach the assessment differently from others.
Paragraph 41 states that if an entity prepares a sensitivity analysis (e.g., value-at-risk) that
reflects inter-dependencies between risk variables (e.g., interest rates and exchange rates) and
uses that analysis to manage financial risks, it may use that sensitivity analysis in place of the
analysis specified in paragraph 40 (described above). However, if an entity does comply with
paragraph 41 rather than paragraph 40, it must also provide an explanation of the method used
in preparing such a sensitivity analysis, the main parameters and assumptions underlying the
data provided, and an explanation of the objective of the method used and of limitations that
may result in the information.
Irrespective of whether an entity complies with paragraph 40 or paragraph 41, if the
sensitivity analyses are considered unrepresentative of a risk inherent in a financial instrument

International Financial Reporting Standard 7 (IFRS 7), Financial Instruments: Disclosure 9

(for example, because the year-end exposure does not reflect the exposure during the year),
the entity shall disclose that fact and the reason it believes the sensitivity analyses are
unrepresentative (42).

Differences from Canadian GAAP


The move to International Financial Reporting Standards has been much more efficient that it
might otherwise be mainly because the Accounting Standards Board began actively
converging Canadian GAAP with International GAAP long before the formal adoption of
IFRS. The Handbook sections dealing with financial instruments are perfect examples of this
approach. Handbook section 3862 is, for all intents and purposes, identical to IFRS 7, except
that IFRS 7:
does not apply to insurance contracts, although IFRS 4 does require the disclosures

specified in IFRS 7
does apply to partially derecognized assets
requires disclosure of any remedy or renegotiation on the terms of a loan in default obtained

prior to the financial statements being authorized for issue versus completed, and
requires less specific disclosures about hedging transactions.

However, one part of IFRS 7 has not been adopted: paragraphs .22 to .24 were not made part
of section 3862. Instead, paragraph 3862.21A specifies that an entity that holds or issues
derivatives, non-derivative financial assets or non-derivative financial liabilities that are
designated and qualify as hedging items is to follow the disclosure requirements of
section 3865.
Articles in this series will discuss:
IFRS 1 First-time Adoption of IFRS
IFRS 3 Business Combinations
IFRS 7 Financial Instruments: Disclosures
IAS 1 Presentation of Financial Statements
IAS 16 Property, Plant and Equipment
IAS 27 Consolidated and Separate Financial Statements
IAS 32 Financial Instruments: Presentation
IAS 36 Impairment of Assets
IAS 37 Provisions, Contingent Liabilities and Contingent Assets
IAS 38 Intangible Assets
IAS 39 Financial Instruments: Recognition and Measurement
For a more comprehensive introduction to the adoption of IFRSs, see the online course
IFRS 7/IAS 32, available on PD Net. You must be registered to access and purchase the
course.
If you are not registered on PD Net, register now its fast, easy, and free.

International Financial Reporting Standard 7 (IFRS 7), Financial Instruments: Disclosure 10

Brian and Laura Friedrich are the principals of friedrich & friedrich corporation, an
accounting research, standards, and education firm. The firm provides policy, procedure, and
governance guidance; develops courses, examinations, and other assessments; and supports
the development of regional public accounting standards in Canada and internationally.
Brian and Laura have served as authors, curriculum developers, lecturers, exam developers,
and markers for numerous CGA and university courses in Canada, China, and the
Caribbean. Their volunteer involvement has earned them CGA-BCs inaugural Ambassador
of Distinction Award (2004) and the J.M. Macbeth Award for service at the chapter level
(Brian in 2006 and Laura in 2007). Brian and Laura are also Fellows of the Association of
Chartered Certified Accountants (ACCA).
Stephen Spector is a Lecturer currently teaching Financial and Managerial Accounting at
Simon Fraser University. He became a CGA in 1985 after obtaining his Master of Arts in
Economics from SFU in 1982. In 1997, CGA-BC presented him with the Harold Clarke
Award of Merit for recognition of his service to the By-Laws Committee for 1990-1996.
In 1999, Stephen received the Fellow Certified General Accountant (FCGA) award for
distinguished service to the Canadian accounting profession. He has been on SFUs Faculty
of Business Administrations Teaching Honour Roll for May 2004 to April 2005 and
May 2006 to April 2007. In August 2008, he was one of the two annual winners of the
Business Facultys TD Canada Trust Distinguished Teaching Award. Stephen has held a
number of volunteer positions with CGA-BC; he currently sits on CGA-BCs board of
governors where he is CGA-BCs President.

International Financial Reporting Standard 7 (IFRS 7), Financial Instruments: Disclosure 11