• Register
Search Questions / Answers

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. You can register with your email or with facebook login in few seconds

Get AccountantAnswer App

Risk management disclosures


What are the Risk management disclosures required under IFRS 7 for credit, liquidity and market risk?

asked Jun 22, 2016 in IFRS 7 - Financial Instruments: Disclosures by anonymous

1 Answer

0 votes

According to IFRS 7, following disclosures are required:

Credit Risk (IFRS 7.36-38)

 

  • The maximum amount of risk without including the collateral amount, description of collateral, and information regarding the credit quality of financial assets which have not been past due or impaired, and the information about the credit quality of financial assets whose conditions have been renegotiated. (IFRS 7.36)
  • for those financial assets which have been past due or impaired, analytical disclosures are essential. (IFRS 7.37)  
  • the information regarding collateral or other credit advancements acquired or called. (IFRS 7.38)
Liquidity Risk (IFRS 7.39)
  • a maturity analysis of financial liabilities  
  • the depiction of strategy to risk management.

Market Risk (7.40-42) 

  • The sensitivity analysis of the market risks to which the entity is threatened.
  • further  information, if the sensitivity analysis is not illustrative of the entity's risk
  • If the entity considers that the different components of market risk such as interest rate risk and foreign currency risk combined, then the entity can provide combined analysis rather than separate analysis.

answered Oct 29, 2016 by ammar0930 Level 2 Member (3,800 points)


...