ifrs 7 financial instruments disclosure

7/30/2019 IFRS 7 Financial Instruments Disclosure

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International FinancialReporting Standards (IFRS)FACT SHEET April 2010

IFRS 7 Financial Instruments: Disclosure(This fact sheet is based on the standard as at 1 January 2010.)

Important note:

This fact sheet is ased on the reuirements of the International Financial Reporting Standards (IFRSs). In some

urisdictions, the IFRSs are adopted in their entirety, in other urisdictions the indiidual IFRSs are amended. In

some urisdictions the reuirements of a particular IFRS may not hae een adopted. Conseuently, users of the

fact sheet in arious urisdictions should ascertain for themseles the releance of the fact sheet to their particular

urisdiction. The application date included elow is the effectie date of the most recent changes made to the

standard.

IASB application date (non-jurisdiction specifc)

IFRS 7 is applicable for annual reporting periods commencing on or after 1 July 2009.

ObjECTIvE

IFRS 7 requires entities to provide disclosures in their nancial statements that enable users to evaluate:

the signicance of nancial instruments for the entitys nancial position and performance, and

the nature and extent of risks arising from nancial instruments to which the entity is exposed during the period and at the

end of the reporting period and how the entity manages the risk.

The principles outlined in IFRS 7 complement the principles for recognising, measuring and presenting nancial assets

and nancial liabilities in IAS 32 Financial Instruments: Presentation and IAS 39 Financial Instruments: Recognition and

Measurement.

SCOPE

IFRS 7 applies to all nancial instruments except for:

interests in subsidiaries, associates, and joint ventures accounted for under IAS 27 Consolidated and Separate Financial

Statements, IAS 28 Investments in Associates or IAS 31 Interest in Joint Ventures unless these standards require IAS 39

to be applied

employers rights and obligations under employee benet plans to which IAS 19 Employee Benefts applies

insurance contracts as dened in IFRS 4 Insurance Contracts; however, IFRS 7 applies to derivatives that are embedded in

insurance contracts if IAS 39 requires an entity to account for them separately

nancial instruments, contracts and obligations under share-based payment transactions to which IFRS 2 Share-based

Paymentapplies

puttable instruments that are required to be classied as equity instruments.

Furthermore, the standard applies to contracts to buy or sell a non-nancial item that are within the scope of IAS 39.

PRESCRIbED ACCOUNTING TREATMENT

The main principle of disclosure for IFRS 7 is that an entity shall disclose information that enables users of its nancial report

to evaluate the signicance of nancial instruments for its nancial position and performance. There are no recognition or

measurement criteria included within IFRS 7.


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International FinancialReporting Standards (IFRS)

2

DISCLOSURES

Refer Appendix 1 for a detailed checklist to assist with IFRS 7 disclosure requirements; however some of the more signicant

disclosures have been described below:

Statement of nancial position

The carrying amount of each of the following categories is disclosed either in the statement of nancial position or in the notes:

a) nancial assets at fair value through prot or loss, showing separately

i. those designated as such upon initial recognition, and

ii. those classied as held for trading in accordance with IAS 39

b) held-to-maturity investments

c) loans and receivables

d) available-for-sale nancial assets

e) nancial liabilities at fair value through prot or loss, showing separatelyi. those designated as such upon initial recognition, and

ii. those classied as held for trading in accordance with IAS 39

f) nancial liabilities measured at amortised cost.

Allowance account for credit losses

When nancial assets are impaired by credit losses and the entity records the impairment in a separate account, it shall disclose

a reconciliation of changes in the account during the period for each class of nancial assets, for example bad debt provisions.

Defaults and reaches

For loans payable recognised at the reporting date, an entity shall disclose details of any defaults, the carrying amount of the

loan in default and whether the default was remedied or renegotiated before the nancial statements was authorised for issue.

Statement of comprehensie income

An entity shall disclose the following items of income, expense, gains or losses either on the face of the nancial statements or

in the notes:

a) net gains or net losses on all nancial instruments separated into classes

b) total interest income and total interest expense for nancial assets or nancial liabilities that are not at fair value through prot

or loss

c) fee income and expense from nancial assets or nancial liabilities that are not at fair value through prot or loss, and trust/

duciary activities (holding or investing of assets on behalf of)

d) interest income on impaired nancial assets

e) the amount of any impairment loss for each class of nancial asset.

Other disclosures

Accounting policies

Disclosure of the measurement bases and other accounting policies used in preparing the nancial statements that are relevant

to an understanding of the nancial statements.

Hedge accounting

An entity shall disclose the following details separately for each type of hedge described in IAS 39 (i.e. fair value hedges, cash

ow hedges, and hedges of net investments in foreign operations):

a) description of each type of hedge

b) description of the nancial instruments designated as hedging instruments and their fair values at the reporting date

c) the nature of the risks being hedged.In relation to cash ow hedges, an entity shall disclose separately:

a) the periods when the cash ows are expected to occur and when they are expected to affect the prot or loss

b) a description of any forecast transaction for which hedge accounting had previously been used, but which is no longer

expected to occur


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c) the amount that was recognised in equity during the period

d) the amount that was removed from equity during the period and included in prot or loss for the period

e) the amount that was removed from equity during the period and included in the initial cost or other carrying amount of

a non-nancial asset or non-nancial l iability whose acquisition or incurrence was a hedged highly probable forecast

transaction.

Fair value

For each class of nancial assets and nancial liabilities, an entity shall disclose the fair value of that class of assets and liabilities

so as to permit comparisons with its carrying amount.

Fair value measurements are to be classied using a fair value hierarchy that reects the signicance of the inputs used in

making the measurements. The fair value hierarchy should have the following levels:

a) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)

b) 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) andc) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

Disclosures of fair value are not required:

a) where the carrying amount is a reasonable approximation of fair value; e.g. short term trade receivables and payables

b) 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 the fair value cannot be reliably measured

c) for a contract containing a discretionary participation feature (as described in IFRS 4 Insurance Contracts) if the fair value of

that feature cannot be measured reliably.

NATURE AND EXTENT OF RISKS ARISING FROM FINANCIAL INSTRUMENTS

An entity shall disclose information that enables users of its nancial statements to evaluate the nature and extent of risks arising

from nancial instruments to which the entity is exposed at the end of the reporting period. The required disclosures focus onthe risks that arise from nancial instruments and the risk management initiatives.

The following types of risks are typically included but not limited to: (i) credit risk, (ii) liquidity risk and (iii) market risk.

Qualitative and quantitative disclosures are required to elaborate on the nature and extent of risks arising from the nancial

instruments.

Qualitative disclosures shall include the exposures to risk and how they arise, the objectives, policies and processes for

managing the risk and the methods used to measure the risk, and any changes in exposure and risk management from the

previous period.

Quantitative disclosures shall comprise of data about its exposure to that risk (including concentration of risk) at reporting date.

Credit risk

By class of nancial instrument, an entity shall disclose: the amount that best represents its maximum exposure to credit risk at the end of the reporting period without taking

account of any collateral held or credit enhancements,

description of collateral as security,

information about the credit quality of nancial assets that are neither past due nor impaired, and

the carrying amount of nancial assets that would otherwise be past due or impaired whose terms have been renegotiated.

Liquidity risk

An entity shall disclose a maturity analysis for nancial liabilities that shows the remaining contractual maturities, and a

description of the corresponding liquidity risk management.

Market risk

An entity shall disclose a sensitivity analysis for each type of market risk to which the entity is exposed at the reporting date.


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The sensitivity analysis shows:

how prot or loss and equity would have been affected by changes in the relevant risk variable that were reasonably possible

at that reporting date. the methods and assumptions used in preparing the sensitivity analysis, and

changes in the methods and assumptions from the previous period.

If the entity prepares a value-at-risk sensitivity analysis that reects interdependencies between risk variables (e.g. interest rates

and exchange rates) and uses it to manage nancial risks, it may use such a sensitivity analysis. Likewise, the entity shall also

disclose an explanation of the method used in preparing the analysis including the parameters and assumptions. An explanation

of the objective of the method used and limitations that may result in the information not fully reecting the fair value shall be

disclosed.

IMPORTANT DEFINITIONS

Credit risk risk that one party to a nancial instrument will cause a nancial loss for the other party by

failing to discharge an obligation.

Currency risk risk that the fair value or future cash ows of a nancial instrument will uctuate because of

changes in foreign exchange rate.

Interest rate risk risk that the fair value or future cash ows of a nancial instrument will uctuate because of

changes in market interest rates.

Liuidity risk risk that an entity will encounter difculty in meeting obligations associated with nancial

liabilities that are settled by delivering cash or another nancial asset.

Loans payale nancial liabilities, other than short term trade payables on normal credit terms.

Market risk risk that the fair value or future cash ows of a nancial instrument will uctuate because of

changes in market prices.

Market risk comprises of currency risk, interest rate risk and other price risk.

Other price risk Risk that the fair value or future cash ows of a nancial instrument will uctuate because of

changes in market prices (other than those arising from interest rate risk or currency risk),

whether those changes are caused by factors specic to the individual nancial instrument or

its issuer, or factors affecting all similar nancial instruments traded in the market.

Past due results if a counterparty fails to make a payment on a nancial asset when the asset is

contractually due.

AUSTRALIAN SPECIFIC REqUIREMENTS

The Australian equivalent standard is AASB 7 which is applicable for annual reporting periods beginning on or after 1 July 2009.


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APPENDIX 1 DISCLOSURE CHECKLIST

This checklist can be used to review your nancial statements you should complete the Yes / No / N/A column about whether

the requirement is included and provide an explanation for No answers to ensure the completeness of disclosures.

Yes / No /

N/A

Explanation

(if reuired)

IFRS 7: Financial Instruments: Disclosures Applicable for nancial statement periods ending on or after 1 July 2009.

Statement of Financial Position

Categories of nancial assets and nancial liabilities

IFRS 7.8 Have the carrying amounts of each of the following categories, as dened

in IAS 39, been disclosed either on the face of the Statement of Financial

Position or in the notes:

a) nancial assets at fair value through prot or loss, showing separately:

those designated as such upon initial recognition; and

those classied as held for trading in accordance with IAS 39;

b) held-to-maturity investments;

c) loans and receivables;

d) available-for-sale nancial assets;

e) nancial liabilities at fair value through prot or loss, showing separately

those designated as such upon initial recognition; and

those classied as held for trading in accordance with IAS 39; and

f) nancial liabilities measured at amortised cost.Does the entity have any nancial assets or nancial liabilities at fair value through prot or loss?

If no, then do not complete IFRS 7.9 and 7.10

IFRS 7.9 If the entity has designated a loan or receivable (or group of loans or

receivables) as at fair value through prot or loss, has the entity disclosed:

a) the maximum exposure to credit risk of the loan or receivable (or group of

loans or receivables) at the reporting date;

b) the amount by which any related credit derivatives or similar instruments

mitigate that maximum exposure to credit risk;

c) the amount of change, during the period and cumulatively, in the fair

value of the loan or receivable (or group of loans or receivables) that isattributable to changes in the credit risk of the nancial asset determined

either:

as the amount of change in its fair value that is not attributable to

changes in market conditions that give rise to market risk; or

using an alternative method the entity believes more faithfully

represents the amount of change in its fair value that is attributable to

changes in the credit risk of the asset;

d) the amount of the change in the fair value of any related credit

derivatives or similar instruments that has occurred during the period and

cumulatively since the loan or receivable was designated.


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Yes / No /

N/A

Explanation

(if reuired)

IFRS 7.10 If the entity has designated a nancial liability as at fair value through the prot

or loss in accordance with paragraph 9 of IAS 39, has the entity disclosed:

a) the amount of change, during the period and cumulatively, in the fair value

of the nancial liability that is attributable to changes in the credit risk of

that liability determined either:

as the amount of change in its fair value that is not attributable to

changes in market conditions that give rise to market risk; or

using an alternative method the entity believes more faithfully

represents the amount of change in its fair value that is attributable to

changes in the credit risk of the liability;

b) the difference between the nancial liabil itys carrying amount and the

amount the entity would be contractually required to pay at maturity to theholder of the obligation.

IFRS 7.11 Has the entity disclosed:

a) the methods used to comply with the requirements in paragraphs 9(c) and

10(a); and

b) if the entity believes that the disclosure it has given to comply with the

requirements in paragraph 9(c) or 10(a) does not faithfully represent the

change in the fair value of the nancial asset or nancial liability attributable

to changes in its credit risk, the reasons for reaching this conclusion and

the factors it believes are relevant.

Has the entity reclassied any xed asset between categories?

If no, then do not complete IFRS 7.12 and 7.13

IFRS 7.12 If the entity has reclassied a nancial asset as one measured:

a) at cost or amortised cost, rather than at fair value; or

b) at fair value, rather than at cost or amortised cost,

has the entity disclosed the amount reclassied into and out of each category

and the reason for that reclassication.

IFRS 7.12A If the entity has reclassied a nancial asset out of the fair value through prot

or loss category or out of the available-for-sale category; has the following

been disclosed:

the amount reclassied into and out of each category

for each reporting period until derecognition, the carrying amounts and fairvalues of all nancial assets that have been reclassied in the current and

previous reporting periods

if a nancial asset was reclassied, the rare situation, and the facts and

circumstances indicating that the situation was rare

for the reporting period when the nancial asset was reclassied, the fair

value gain or loss or other comprehensive income in that reporting period

and in the previous reporting period

for each reporting period following the reclassication until derecognition

of the nancial asset, the fair value gain or loss that would have been

recognised in prot or loss or other comprehensive income if the nancial

asset had not been reclassied, and the gain, loss, income and expense

recognised in prot or loss and

the effective interest rate and estimated amounts of cash ows the entity

expects to recover, as at the date of reclassication of the nancial asset.


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Yes / No /

N/A

Explanation

(if reuired)

IFRS 7.13 An entity may have transferred nancial assets in such a way that part or all of

the nancial assets do not qualify for derecognition, for such nancial assets,

has the entity disclosed?

a) the nature of the assets;

b) the nature of the risks and rewards of ownership to which the entity

remains exposed;

c) when the entity continues to recognise all of the assets, the carrying

amounts of the assets and of the associated liabilities; and

d) when the entity continues to recognise the assets to the extent of its

continuing involvement, the total carrying amount of the original assets,

the amount of the assets that the entity continues to recognise, and the

carrying amount of the associated liabilities.

Does the entity hold any collateral or has the entity pledged any collateral?

If no, do not complete IFRS 7.14 or IFRS 7.15


a) the carrying amount of nancial assets it has pledged as collateral for

liabilities or contingent liabilities, including amounts that have been

reclassied in accordance with paragraph 37(a) of IAS 39; and

b) the terms and conditions relating to its pledge.

IFRS 7.15 When an entity holds collateral (of nancial or non-nancial assets) and is

permitted to sell or repledge the collateral in the absence of default by the

owner of the collateral, has the entity disclosed:

a) the fair value of the collateral held;

b) the fair value of any such collateral sold or repledged, and whether the

entity has an obligation to return it; and

c) the terms and conditions associated with its use of the collateral.

Has the entity impaired any nancial assets for credit losses, e.g. bad debt provision?

If no, do not complete IFRS 7.16

IFRS 7.16 When nancial assets are impaired by credit losses and the 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, has the entity disclosed a reconciliation of changes in that account

during the period for each class of nancial assets?

Has the entity issued any compound nancial instruments with multiple embedded derivatives?


IFRS 7.17 If an entity has issued an instrument that contains both a liability and an equity

component (see paragraph 28 of IAS 32) and the instrument has multiple

embedded derivatives whose values are interdependent (such as a callable

convertible debt instrument), has the entity disclosed the existence of those

features?


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Yes / No /

N/A

Explanation

(if reuired)

Does the entity have any loans payable at reporting date?

If no, do not complete IFRS 7.18 and 7.19

IFRS 7.18 For loans payable recognised at the reporting date, has the entity disclosed:

a) details of any defaults during the period of principal, interest, sinking fund,

or redemption terms of those loans payable;

b) the carrying amount of the loans payable in default at the reporting date;

and

c) whether the default was remedied, or the terms of the loans payable were

renegotiated, before the nancial statement was authorised for issue.

IFRS 7.19 Where there were other breaches of loan agreements, has the entities

disclosed the information required by IFRS 7.18 if the breaches permitted

the lender to demand accelerated repayments (unless the breaches were

remedied or the terms of the loan were renegotiated, on or before the

reporting date)?

Income statement and euity

Items of income, expense, gains or losses

IFRS 7.20 Has the entity disclosed the following items of income, expense, gains or

losses either on the face of statement of comprehensive income or in the

notes:

a) net gains or net losses on:

nancial assets or nancial liabilities at fair value through prot or loss,showing separately those on nancial assets or nancial liabilities

designated as such upon initial recognition, and those on nancial

assets or nancial liabilities that are classied as held for trading in

accordance with IAS 39;

available-for-sale nancial assets, showing separately the amount of

gain or loss recognised in other comprehensive income during the

period and the amount removed from equity and recognised in prot or

loss for the period;

held-to-maturity investments;

loans and receivables; and

nancial liabilities measured at amortised cost;

b) total interest income and total interest expense (calculated using the

effective interest method) for nancial assets or nancial liabilities that are

not at fair value through prot or loss;

c) fee income and expense (other than amounts included in determining the

effective interest rate) arising from:

nancial assets or nancial liabilities that are not at fair value through

prot or loss; and

trust and other duciary activities that result in the holding or investing

of assets on behalf of individuals, trusts, retirement benet plans, and

other institutions;

d) interest income on impaired nancial assets accrued in accordance with

paragraph AG93 of IAS 39; and

e) the amount of any impairment loss for each class of nancial asset.


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Yes / No /

N/A

Explanation

(if reuired)

Other disclosures

Accounting policies

IFRS 7.21 Has the entity disclosed, in the summary of signicant accounting policies,

the measurement basis (or bases) used in preparing the nancial statement

and the other accounting policies used that are relevant to an understanding

of the nancial statement?

Does the entity follow hedge accounting?

If no, do not complete IFRS 7.22 7.24

IFRS 7.22 Has the entity disclosed the following separately for each type of hedge

described in IAS 39 (i.e. fair value hedges, cash ow hedges, and hedges of

net investments in foreign operations):

a) a description of each type of hedge;

b) a description of the nancial instruments designated as hedging

instruments and their fair values at the reporting date; and

c) the nature of the risks being hedged.

IFRS 7.23 Where the entity has cash ow hedges, has the following been disclosed:

a) the periods when the cash ows are expected to occur and when they are

expected to affect prot or loss;

b) a description of any forecast transaction for which hedge accounting had

previously been used, but which is no longer expected to occur;

c) the amount that was recognised in other comprehensive income during

the period;

d) the amount that was removed from equity and included in prot or loss for

the period, showing the amount included in each line item in the statement

of comprehensive income; and

e) the amount that was removed from equity during the period and included

in the initial cost or other carrying amount of a non-nancial asset or

non-nancial liability whose acquisition or incurrence was a hedged highly

probable forecast transaction.

IFRS 7.24 Has the entity disclosed separately:

a) in fair value hedges, gains or losses:

on the hedging instrument; and

on the hedged item attributable to the hedged risk;

b) the ineffectiveness recognised in prot or loss that arises from cash ow

hedges; and

c) the ineffectiveness recognised in prot or loss that arises from hedges of

net investments in foreign operations.


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Yes / No /

N/A

Explanation

(if reuired)

Fair alue

IFRS 7.25 Has the entity disclosed the fair value of each class of nancial assets and

nancial liabilities in a way that permits it to be compared with its carrying

amount?

Exceptions to this disclosure are as follows (per IFRS 7.29):

a) when the carrying amount is a reasonable approximation of fair value, for

example, for nancial instruments such as short-term trade receivables

and payables;

b) 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 valuecannot be measured reliably; or

c) for a contract containing a discretionary participation feature (as described

in IFRS 4) if the fair value of that feature cannot be measured reliably.

IFRS 7.26 Has the entity grouped nancial assets and nancial liabilities into classes,

but offset them only to the extent that their carrying amounts are offset in the

Statement of Financial Position in the fair value disclosures?

IFRS 7.27 Has the entity disclosed: the methods and, when a valuation technique is

used, the assumptions applied in determining fair values of each class of

nancial assets or nancial liabilities.

For example, if applicable, an entity discloses information about the

assumptions relating to prepayment rates, rates of estimated credit losses,and interest rates or discount rates;

Where there has been a change in valuation technique, has that change and

reasons for making it been disclosed?

IFRS 7.27B For fair value measurements recognised in the statement of nancial position,

has the entity disclosed, for each class of nancial instruments:

a) the level in the fair value hierarchy into which the fair value measurements

are categorised in their entirety, segregating fair value measurements in

accordance with the levels dened in paragraph 27A

b) any signicant transfers between Level 1 and Level 2 of the fair value

hierarchy and the reasons for those transfers. Have transfers into each

level been disclosed and discussed separately from transfers out of eachlevel.

c) For fair value measurements in Level 3 of the fair value hierarchy, is there

a reconciliation from the beginning balances to the ending balances,

disclosing separately changes during the period attributable to the

following:

i. Total gains or losses for the period recognised in prot or loss,

and a description of where they are presented in the statement

of comprehensive income or the separate income statement (if

presented)

ii. Total gains or losses recognised in other comprehensive income

iii. Purchases, sales, issues and settlements (each type of movementdisclosed separately) and

iv. Transfers into or out of Level 3 and the reasons for those transfers.

For signicant transfers, have transfers into Level 3 been disclosed.


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Yes / No /

N/A

Explanation

(if reuired)

d) the amount of total gains or losses for the period in (c)(i) above included

in prot or loss that are attributable to gains or losses relating to those

assets and liabilities held at the end of the reporting period and a

description of where those gains or losses are presented in the statement

of comprehensive income or the separate income statement (if presented)

e) for fair value measurements in Level 3, if changing one or more of the

inputs to reasonably possible alternative assumptions would change fair

value signicantly, has the entity stated that fact and disclosed the effect

of those changes. Has the entity disclosed how the effect of a change to

a reasonably possible alternative assumption was calculated?

The disclosure required by IFRS 7.27B should be presented in a tabular form

unless another format is more appropriate.

IFRS 7.28 If the market for a nancial instrument is not active, an entity establishes its

fair value using a valuation technique. If there is a difference between the fair

value at initial recognition, i.e. transaction price and the amount that would be

determined at that date using a valuation technique for a nancial instrument

in a non-active market, has the entity disclosed by class of nancial

instrument:

a) its accounting policy for recognising that difference in prot or loss to

reect a change in factors (including time) that market participants would

consider in setting a price; and

b) the aggregate difference yet to be recognised in prot or loss at the

beginning and end of the period and a reconciliation of changes in thebalance of this difference.

IFRS 7.30 If exceptions (b) and (c) described in IFRS 7.29 (see IFRS 7.25 above) exist,

has the entity disclosed information to help users of the nancial statement

make their own judgements about the extent of possible differences between

the carrying amount of those nancial assets or nancial liabilities and their fair

value, including:

a) the fact that fair value information has not been disclosed for these

instruments because their fair value cannot be measured reliably;

b) a description of the nancial instruments, their carrying amount, and an

explanation of why fair value cannot be measured reliably;

c) information about the market for the instruments;d) information about whether and how the entity intends to dispose of the

nancial instruments; and

e) if nancial instruments whose fair value previously could not be reliably

measured are derecognised, that fact, their carrying amount at the time of

derecognition, and the amount of gain or loss recognised.

Nature and extent of risks arising from nancial instruments

IFRS 7.31 Has the entity disclosed information that enables users of its nancial

statement to evaluate the nature and extent of risks arising from nancial

instruments to which the entity is exposed at the reporting date?

These typically include but are not limited to credit risk, liquidity risk and

market risk.


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Yes / No /

N/A

Explanation

(if reuired)

qualitatie disclosures

IFRS 7.33 For each type of risk arising from nancial instruments, has the entity

disclosed:

a) the exposures to risk and how they arise;

b) its objectives, policies and processes for managing the risk and the

methods used to measure the risk; and

c) any changes in (a) or (b) from the previous period.

quantitatie disclosures

IFRS 7.34 For each type of risk arising from nancial instruments, has the entity

disclosed:

a) summary quantitative data about its exposure to that risk at the reporting

date. This disclosure shall be based on the information provided internally

to key management personnel of the entity (as dened in IAS 24 Related

Party Disclosures), for example the entitys board of directors or chief

executive ofcer;

b) the disclosures required by paragraphs 3642 of IFRS 7 (see below), to

the extent not provided in (a), unless the risk is not material; and

c) concentrations of risk if not apparent from (a) and (b).

IFRS 7.35 If the quantitative data disclosed as at the reporting date are unrepresentative

of an entitys exposure to risk during the period, has the entity provided further

information that is representative?Is the entity subject to credit risk?


IFRS 7.36 Has the entity disclosed by class of nancial instrument:

a) the amount that best represents its maximum exposure to credit risk at

the reporting date without taking account of any collateral held or other

credit enhancements (e.g. netting agreements that do not qualify for offset

in accordance with IAS 32);

b) in respect of the amount disclosed in (a), a description of collateral held as

security and other credit enhancements;

c) information about the credit quality of nancial assets that are neither past

due nor impaired; and

d) the carrying amount of nancial assets that would otherwise be past due

or impaired whose terms have been renegotiated.

IFRS 7.37 Has the entity disclosed by class of nancial asset:

a) an analysis of the age of nancial assets that are past due as at the

reporting date but not impaired;

b) an analysis of nancial assets that are individually determined to be

impaired as at the reporting date, including the factors the entity

considered in determining that they are impaired; and

c) for the amounts disclosed in (a) and (b), a description of collateral held

by the entity as security and other credit enhancements and, unlessimpracticable, an estimate of their fair value.


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Yes / No /

N/A

Explanation

(if reuired)

IFRS 7.38 When an entity obtains nancial or non-nancial assets during the period by

taking possession of collateral it holds as security or calling on other credit

enhancements (e.g. guarantees), and such assets meet the recognition

criteria in other Australian Accounting Standards, has the entity disclosed:

a) the nature and carrying amount of the assets obtained; and

b) when the assets are not readily convertible into cash, its policies for

disposing of such assets or for using them in its operations.

Is the entity subject to liquidity risk?



a) a maturity analysis for non-derivative nancial liabilities that shows the

remaining contractual maturities;

b) a maturity analysis for derivative nancial liabilities which included the

remaining contractual maturities for those derivative nancial liabilities

fro which contractual maturities are essential for an understanding of the

timing of the cash ows.

c) a description of how it manages the liquidity risk inherent in (a) and (b).

Is the entity subject to market risk?


Sensitiity analysis


a) a sensitivity analysis for each type of market risk to which the entity is

exposed at the reporting date, showing how prot or loss and equity

would have been affected by changes in the relevant risk variable that

were reasonably possible at that date;

b) the methods and assumptions used in preparing the sensitivity analysis;

and

c) changes from the previous period in the methods and assumptions used,

and the reasons for such changes.

IFRS 7.41 As the entity prepare a sensitivity analysis reecting interdependencies

between risk variables which it uses to manage nancial risk (e.g. value-at-

risk), has the entity provided additional regarding the sensitivity analysis it

prepares and:

a) an explanation of the method used in preparing such a sensitivity analysis,

and of the main parameters and assumptions underlying the data

provided; and

b) an explanation of the objective of the method used and of limitations that

may result in the information not fully reecting the fair value of the assets

and liabilities involved.

Other market risk disclosures

IFRS 7.42 If the sensitivity analyses disclosed are unrepresentative of a risk inherent in a

nancial instrument (e.g. because the year-end exposure does not reect theexposure during the year), has the entity disclosed that fact and the reason it

believes the sensitivity analyses are unrepresentative?


14/14

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