International Financial Reporting Standards_guide.pdf

376 Chapter 34 Financial Instruments: Disclosures (IFRS 7)
34.5.3 Derecognition of Statement of Financial Position items. All transfers of assets not
qualifying for derecognition must be identified as follows:
■ the nature of assets transferred that do not qualify for derecognition (for example,
certain special-purpose vehicles for asset-backed securities);
■ the nature of the risks/rewards still exposed; and
■ the carrying amount of assets still recognized—disclose the original total and
associated liabilities.
34.5.4 Collateral related to items on the Statement of Financial Position. The following
must be disclosed:
■ the carrying amount of financial assets pledged as collateral for liabilities or contingent
liabilities and the terms and conditions relating to the pledge; and
■ for financial assets received as a collateral that are available to be resold or repledged in
the absence of default:
– the fair value of collateral held if available to be sold or repledged (even if the owner
does not default);
– the fair value of collateral sold or repledged (whether there is any obligation to
return the collateral at the contract maturity); and
– terms and conditions for the use of collateral.
34.5.5 Allowance for credit losses on the Statement of Financial Position. Reconciliation
of changes during the current period should be provided for all impaired financial assets, by
class of asset.
34.5.6 Embedded options in the Statement of Financial Position (structured liabilities
with equity components using interdependent, multiple embedded derivatives). Disclose the
existence of features and interdependencies for all financial liabilities with multiple embedded
derivatives.
34.5.7 Loans payable in default. For loans payable, where loans are in default or conditions
have been breached, disclose the following:
■ the carrying amount of such liabilities;
■ details related to the principal, interest, sinking fund, or redemption terms; and
■ any remedy of default or renegotiation of loan terms that had taken place prior to the
issue of the financial statements.
34.5.8 Hedge accounting in the financial statements. The types of hedges and risks related
to hedging activities must be disclosed as follows (table 34.6).
34.5.9 Fair value disclosure in the financial statements (see table 34.7). The fair value
information required depends on how the financial instrument is measured in the Statement
of Financial Position.
34.5.10 Nature and extent of risks arising from financial instruments: qualitative disclosures.
Qualitative disclosures (the nature of risks and how they arose) do not necessarily
have to be broken down by individual financial instruments. However, each type of risk arising
from all financial assets and financial liabilities must be discussed, as follows:
■ the exposure to risk and how risks arise;
■ the objectives, policies, and processes to manage risk, as well as any changes in risk
management processes from the previous period; and