PFRS 7 — FINANCIAL

INSTRUMENTS:
DISCLOSURES

History of IFRS 7
Exposure Draft ED
7 Financial Instruments:
Disclosures published
Amended
by Improvements to
IFRSs 2014 (servicing Amended by Interest
Mandatory Effective
contracts and Rate Benchmark
Reclassification of Date and Transition
applicability of the Reform — Phase 2
Financial Assets Disclosures
amendments to IFRS 7 (Amendments to IFRS
(Amendments to IAS 39 (Amendments to IFRS
to condensed interim 9, IAS 39, IFRS 7, IFRS
and IFRS 7) issued 9 and IFRS 7) issued
financial statements) 4 and IFRS 16)

22 July 2004 13 Oct. 2008 16 Dec. 2011 25 Sep. 2014 27 Aug. 2020

18 Aug. 2005 6 May 2010 19 Nov. 2013 26 Sep. 2019

Amended Interest Rate

IFRS 7 Financial IFRS 9 Financial Benchmark Reform
Instruments: by Improvements to Instruments (Hedge
IFRSs (clarification of (Amendments to IFRS
Disclosures issued, Accounting and 9, IAS 39 and IFRS 7)
Effective for annual disclosures) Effective amendments to IFRS 9,
periods beginning on or for annual periods IFRS 7 and IAS 39)
after 1 January 2007 beginning on or after 1
January 2011
Disclosure requirements of PFRS 7

information about
information about the nature and
the significance of extent of risks
financial arising from
instruments.  financial
instruments
 INFORMATION
ABOUT THE
SIGNIFICANCE
OF FINANCIAL
INSTRUMENTS
 financial assets measured
at fair value through profit
and loss, showing
held-to-maturity
separately those held for
investments 
trading and those

Statemen designated at initial

recognition 

t of loans and receivables  available-for-sale assets 

financial
position financial liabilities at fair
value through profit and
loss, showing separately
financial liabilities
measured at amortized
those held for trading and
cost
those designated at initial
recognition 
 Other balance sheet-related
disclosures:

1 2 3 4 5 6

special disclosures reclassifications of information about reconciliation of the information about breaches of terms of
about financial financial instruments financial assets allowance account compound financial loan agreements
assets and financial from one category to pledged as collateral for credit losses (bad instruments with
liabilities designated another (e.g. from and about financial debts) by class of multiple embedded
to be measured at fair value to or non-financial financial assets derivatives
fair value through amortised cost or assets held as
profit and loss, vice versa) collateral
including disclosures
about credit risk and
market risk, changes
in fair values
attributable to these
risks and the
methods of
measurement.
Statement of comprehensive income
financial assets measured
at fair value through profit
and loss, showing loans and
held-to-maturity
separately those held for receivables. available-for-
investments. 
trading and those sale assets. 
designated at initial
recognition. 

financial liabilities
measured at fair value
through profit and loss, financial liabilities
showing separately those measured at amortized
held for trading and those cost.
designated at initial
recognition. 
Other income statement-related
disclosures: 

1 2 3 4
total interest income fee income and amount of impairment interest income on
and total interest expense losses by class of impaired financial
expense for those financial assets assets
financial instruments
that are not measured
at fair value through
profit and loss
 Other disclosures

For fair value hedges,

Accounting policies for
financial instruments
information about the fair
Information about hedge
value changes of the hedging
accounting
instrument and the hedged
item

Hedge ineffectiveness
recognised in profit and loss Information about the fair
Uncertainty arising from the
(separately for cash flow values of each class of
interest rate benchmark
hedges and hedges of a net financial asset and financial
reform
investment in a foreign liability
operation)
Other disclosure - FV Hierarchy
Level 1 – quoted prices for similar
instruments 

Level 2 – directly observable market

inputs other than Level 1 inputs 

Level 3 – inputs not based on

observable market data
 NATURE AND
EXTENT OF
EXPOSURE TO
RISKS ARISING
FROM FINANCIAL
INSTRUMENTS
Qualitative disclosures
The qualitative disclosures
describe:
• risk exposures for each type of financial
instrument
• management's objectives, policies, and
processes for managing those risks
• changes from the prior period
Quantitative disclosures
The quantitative disclosures provide information
about the extent to which the entity is exposed to
risk, based on information provided internally to
the entity's key management personnel. These
disclosures include:
• summary quantitative data about exposure to each risk at the
reporting date
• disclosures about credit risk, liquidity risk, and market risk and
how these risks are managed as further described below
• concentrations of risk
Credit risk
• Credit risk is the risk that one party to a
financial instrument will cause a loss
for the other party by failing to pay for
its obligation.
Disclosures about credit risk include
• maximum amount of exposure (before
deducting the value of collateral),
description of collateral, information
about credit quality of financial assets
that are neither past due nor impaired,
and information about credit quality of
financial assets whose terms have
been renegotiated
• for financial assets that are past due
or impaired, analytical disclosures are
required
• information about collateral or other
credit enhancements obtained or
called
Liquidity risk
• Liquidity risk is the risk that Disclosures about liquidity
an entity will have risk include:
difficulties in paying its • a maturity analysis of
financial liabilities. financial liabilities
• description of approach to
risk management
Market risk
Market risk is the risk that the fair value
or cash flows of a financial instrument
will fluctuate due to changes in market
prices. Market risk reflects interest rate
risk, currency risk and other price risks.
Disclosures about market risk include:
• a sensitivity analysis of each type of
market risk to which the entity is exposed
• additional information if the sensitivity
analysis is not representative of the entity's
risk exposure (for example because
exposures during the year were different to
exposures at year-end).
• Provides that if an entity prepares a
sensitivity analysis such as value-at-risk
for management purposes that reflects
interdependencies of more than one
component of market risk (for instance,
interest risk and foreign currency risk
combined), it may disclose that analysis
instead of a separate sensitivity analysis
for each type of market risk
Transfers of financial assets
An entity shall disclose information
that enables users of its financial
statements:
• to understand the relationship between
transferred financial assets that are not
derecognised in their entirety and the
associated liabilities; and
• to evaluate the nature of, and risks associated
with, the entity's continuing involvement in
derecognised financial assets.
Transferred financial
assets that are not
derecognized in their
entirety

Required disclosures include description

of the nature of the transferred assets,
nature of risk and rewards as well as
description of the nature and quantitative
disclosure depicting relationship between
transferred financial assets and the
associated liabilities.
Transferred financial assets that are
derecognized in their entirety
Required disclosures include the carrying amount of the assets
and liabilities recognized, fair value of the assets and liabilities
that represent continuing involvement, maximum exposure to
loss from the continuing involvement as well as maturity
analysis of the undiscounted cash flows to repurchase the
derecognized financial assets.

Additional disclosures are required for any gain or loss

recognized at the date of transfer of the assets,
income or expenses recognize from the entity's
continuing involvement in the derecognized financial
assets as well as details of uneven distribution of
proceed from transfer activity throughout the reporting
period.
THANK
YOU!