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   COACHING CLASSES FOR COMMERCE STUDENTS:    INTER COMMERCE    1ST YEAR 2ND YEAR    ACCOUNTING    BUSINESS MATHS STATIST...
   JOIN SIR KHALID   EXPERIENCE OF OVER 12 YEARS   COACHING CLASSES FOR O/As/A LEVELs    ACCOUNTS, COMMERCE,BUSINESS  ...
   PIPFA STUDENTS   INTERMEDIATE    FINANCIAL ACCOUNTING   PERFORMANCE MEASUREMENT   COMPLETION OF SYLLABUS IN 3 MONT...
   ICAP STUDENTS   MODULE A       QT   MODULE B       FINANCIAL ACCOUNTING                  BUSINESS ECONOMICS   MODU...
   PREVIOUS   MICRO ECONOMICS & STATISTICS   FINAL   MACRO ECONOMICS
   ACCOUNTING, ECONOMICS, BUSINESS    STUDIES, URDU & PAK STUDIES        INTER COMMERCE   1ST YEAR ACCOUNTING, BUSINESS ...
   PART 1 ACCOUNTING, STATISTICS &    ECONOMICS.   PART 2 ADVANCED & COST    ACCOUNTING, BUSINESS LAW, AUDITING    & TAX.
•     IFRS 7 sets out disclosures of financial instruments •     The presentation, recognition and measurement of       fi...
Information that enables users to evaluate the         significance of financial instruments for the entity’s             ...
•     Qualitative information about exposure to risks       arising from financial instruments. •     The disclosures desc...
•     Quantitative information about exposure to risks       arising from financial instruments, including specified      ...
       The IFRS for SMEs requires less detailed        disclosure of financial instruments.© IFRS Foundation | 30 Cannon ...
•     Qualitative and quantitative information to evaluate       the nature and extent of the entity’s exposure to and    ...
•     Fair value information is required to be provided for       all financial assets and liabilities (with limited      ...
International Financial Reporting StandardsThe views expressed in this presentation are those of thepresenter, not necessa...
•     Respond to comments:         • preparers: Cost-benefit – scope, class vs. counterparty,           existing disclosur...
•     Proposed disclosure:      Gross amounts                   Gross amounts                     Net amounts      Other a...
Assume an entity has a recognised derivative asset with a fair       value of 100 and a recognised derivative liability wi...
Same example Assume an entity has a recognised derivative        asset with a fair value of 100 and a recognised derivativ...
        Comments received highlighted inconsistencies in             the application of the offsetting requirements in IA...
Expressions of individualviews by members of the IASBand its staff are encouraged.The views expressed in thispresentation ...
26The requirements are set out in InternationalFinancial Reporting Standards (IFRSs), as issuedby the IASB at 1 January 20...
Ifrs 7 presenting financial instruments
Ifrs 7 presenting financial instruments
Ifrs 7 presenting financial instruments
Ifrs 7 presenting financial instruments
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Ifrs 7 presenting financial instruments

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Ifrs 7 presenting financial instruments

  1. 1.  COACHING CLASSES FOR COMMERCE STUDENTS: INTER COMMERCE 1ST YEAR 2ND YEAR ACCOUNTING BUSINESS MATHS STATISTICS ECONOMICS BANKING B.COM classes PART 1 ACCOUNTING, ECONOMICS & STATISTICS . PART 2 ADVANCED ACCOUNTING O LEVELS ACCOUNTS, ECONOMICS, BUSINESS STUDIES, PAKISTAN STUDIES & URDU. ICMAP STAGE 1,2,3,4 PIPFA ICAP MODULE B & D CAT T1-T8 ACCA F1,F2,F3,F5,F8,P1,P7 MA-ECONOMICS 100 % RESULT IN 2011-2012 KHALID AZIZ 0322-3385752 R1173, ALNOOR SOCIETY, BLOCK 19, POWER HOUSE, F.B.AREA, KARACHI.
  2. 2.  JOIN SIR KHALID EXPERIENCE OF OVER 12 YEARS COACHING CLASSES FOR O/As/A LEVELs ACCOUNTS, COMMERCE,BUSINESS STUDIES, ECONOMICS,URDU & PAK.STUDIES. CONCEPTUAL LEARNING COMPLETE PAST PAPERS CONTACT NOW: 0322-3385752 KARACHI http://o-levels-pk.blogspot.com/
  3. 3.  PIPFA STUDENTS INTERMEDIATE FINANCIAL ACCOUNTING PERFORMANCE MEASUREMENT COMPLETION OF SYLLABUS IN 3 MONTH JOIN KHALID AZIZ 0322*3385752 R1173-ALNOOR SOCIETY BLOCK 19 F.B.AREA-KARACHI.
  4. 4.  ICAP STUDENTS MODULE A QT MODULE B FINANCIAL ACCOUNTING BUSINESS ECONOMICS MODULE D COST ACCOUNTING COMPLETION OF SYLLABUS IN 3 MONTHS JOIN KHALID AZIZ 0322*3385752 R1173, ALNOOR SOCIETY, BLOCK 19. F.B.AREA, KARACHI.
  5. 5.  PREVIOUS MICRO ECONOMICS & STATISTICS FINAL MACRO ECONOMICS
  6. 6.  ACCOUNTING, ECONOMICS, BUSINESS STUDIES, URDU & PAK STUDIES INTER COMMERCE 1ST YEAR ACCOUNTING, BUSINESS MATHS & ECONOMICS. 2ND YEAR ACCOUNTING & STATISTICS
  7. 7.  PART 1 ACCOUNTING, STATISTICS & ECONOMICS. PART 2 ADVANCED & COST ACCOUNTING, BUSINESS LAW, AUDITING & TAX.
  8. 8. • IFRS 7 sets out disclosures of financial instruments • The presentation, recognition and measurement of financial instruments are the subjects of • IAS 32 Financial Instruments: Presentation • IAS 39 Financial Instruments: Recognition and Measurement • IFRS 9 Financial Instruments (being developed in phases) is intended to ultimately replace IAS 39.© IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org 12
  9. 9. Information that enables users to evaluate the significance of financial instruments for the entity’s financial position and financial performance. • Information (qualitative and quantitative) that enables users 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. • including information about how the entity manages its exposure to those financial risks.© IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org 13
  10. 10. • Qualitative information about exposure to risks arising from financial instruments. • The disclosures describe management’s objectives, policies and processes for managing those risks© IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org 14
  11. 11. • Quantitative information about exposure to risks arising from financial instruments, including specified minimum disclosures about • credit risk, • liquidity risk and • market risk. • These 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.© IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org 15
  12. 12.  The IFRS for SMEs requires less detailed disclosure of financial instruments.© IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org 16
  13. 13. • Qualitative and quantitative information to evaluate the nature and extent of the entity’s exposure to and management of risks arising from financial instruments, including: • amounts that best represent maximum exposure to credit risk. • sensitivity analysis for each type of market risk showing how profit or loss and equity would have been affected by changes in relevant variables that are reasonably possible.© IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org 17
  14. 14. • Fair value information is required to be provided for all financial assets and liabilities (with limited exceptions) irrespective of whether they are carried at FV.© IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org 18
  15. 15. International Financial Reporting StandardsThe views expressed in this presentation are those of thepresenter, not necessarily those of the IASB or IFRS Foundation© IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
  16. 16. • Respond to comments: • preparers: Cost-benefit – scope, class vs. counterparty, existing disclosure requirements • investors: Need for information about gross and net exposures • Provide information about exposures in normal course and in times of stress • Don’t reconcile IFRSs and US GAAP but allow entities to be compared on a like basis© IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org 20
  17. 17. • Proposed disclosure: Gross amounts Gross amounts Net amounts Other amounts Net amounts before set off presented in scope but offsetting in balance not set off in sheet balance sheet (A) (B) (C) (D) (E) [same for [depends on [depends on [depends on [same for all preparers] offsetting model] offsetting model] offsetting model] all preparers]© IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org 21
  18. 18. Assume an entity has a recognised derivative asset with a fair value of 100 and a recognised derivative liability with a fair value of 80 that meet the criteria for offsetting. The entity has another derivative liability with a fair value of 10 and cash collateral of 20 that do not meet the criteria for offsetting. The financial assets would be disclosed as follows: a. b. c. d. e.Financial assets Gross carrying Gross Net amount presented in Amounts available to be offset (but Net exposure amounts (before amounts statement of financial not set off in stmt of financial (c-d) offsetting) offset position position) (a-b) (ie in bankruptcy or default)Category Financial Cash collateral instruments Derivatives 100 (80) 20 (10) 10 - © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org 22
  19. 19. Same example Assume an entity has a recognised derivative asset with a fair value of 100 and a recognised derivative liability with a fair value of 80 that meet the criteria for offsetting. The entity has another derivative liability with a fair value of 10 and cash collateral of 20 that do not meet the criteria for offsetting. The financial liabilities would be disclosed as follows: a. b. c. d. e.Financial Gross carrying Gross Net amount presented in Amounts available to be offset (but Net exposureliabilities amounts (before amounts statement of financial not set off in stmt of financial (c-d) offsetting) offset position position) (a-b) (ie in bankruptcy or default)Category Financial Cash collateral instruments Derivatives 90 (80) 10 - 10 - © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org 23
  20. 20.  Comments received highlighted inconsistencies in the application of the offsetting requirements in IAS 32  In December 2011, the IASB separately clarified the application of the offsetting criteria in IAS 32:  Legally enforceable right of set-off:  The normal course of business;  The event of default; and  The event of insolvency or bankruptcy  Some gross settlement systems are considered equivalent to net settlement if they eliminate or result in insignificant credit and liquidity risk and process receivables and payables in a single settlement process or cycle.© IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org 24
  21. 21. Expressions of individualviews by members of the IASBand its staff are encouraged.The views expressed in thispresentation are those of thepresenter.Official positions of the IASBon accounting matters aredetermined only afterextensive due process anddeliberation.© IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org 25
  22. 22. 26The requirements are set out in InternationalFinancial Reporting Standards (IFRSs), as issuedby the IASB at 1 January 2012 with an effectivedate after 1 January 2012 but not the IFRSs theywill replace.The IFRS Foundation, the authors, the presentersand the publishers do not accept responsibility forloss caused to any person who acts or refrainsfrom acting in reliance on the material in thisPowerPoint presentation, whether such loss iscaused by negligence or otherwise. © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

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