This standard provides guidance on disclosure requirements for financial instruments. It aims to enable users to understand the significance of financial instruments for an entity's financial position and performance, as well as the nature and extent of risks arising from financial instruments. Key disclosure requirements include information on classes of financial assets and liabilities, fair value measurements, credit risk, liquidity risk, market risk, and hedge accounting. The standard requires both qualitative and quantitative disclosures to provide a comprehensive picture of an entity's exposure to various risks from its use of financial instruments.

1. Financial Instruments Disclosures- IFRS 7Main features of the standard

2. Objectives 1)The objectives are to enable the users of financial statements of an entity to realize the significance of the financial instruments and the nature and extent of risks arising from such instruments and how such risks are managed.

3. 2)The principles in this IFRS complement the IAS 32 & 39.Scope 3. This IFRS is applicable by all entities to all types Financial Instruments (FI) except:

4. A) Subsidiaries (IAS 27), associates (IAS28) or joint ventures (IAS31). Anyway, all derivatives are applicable except where they are equity instruments (IAS32).

5. B) Employees’ benefits (IAS19)

6. C) deleted

7. D) Insurance contracts under IFRS 4

8. E) FIs, contracts and obligations under share based payments (IFRS 2)

9. F) Instruments classified as equity instruments (IAS32)

10. 4. This IFRS applies to recognized FIs (IAS 39) and unrecognized ones such as loan commitments.

11. 5. This also applies to non financial items (IAS39)Classes of financial instruments and level of disclosure6. This IFRS requires similar FIs to be grouped together.

12. Significance of FIs for financial position and performance

13. 7. An entity will disclose information about its F I s to enable users to evaluate their significance.

14. Statement of financial position , categories of financial assets and financial liabilities

15. 8. The carrying amounts of the following will be disclosed:

16. A) financial assets at fair values through profit and loss showing separately i) upon initial recognition, ii) HFTs as per IAS 39

17. B) HTM investments

18. C) loans and receivables

19. D) AFS assets

20. E) Financial liabilities same as a) above for assets

21. F) financial liabilities at amortized costs. Financial assets and liabilities at fair values through profit and loss9. if a loan or a receivable is expressed at fair value through profit and loss, then disclose the following:

22. A) maximum exposure to credit risks

23. B) the amount by which any related credit derivative will mitigate the credit risk

24. C) any change in fair value of a loan or a receivable on account of a change in credit risk that is determined that this change is not due to market risk or using an alternative method that will indicate that the change is due to credit risk. Market conditions will give rise to market risks.

25. D) the amount of change that has occurred due to change in fair values of credit derivatives. Financial assets and liabilities at fair values through profit and loss (Contd.)10. if a financial liability is at fair value through profit and loss then disclose:

26. A) information as per 9 © above. Changes in market conditions occasion changes in bench mark interest rate, price of another FI, a commodity price, price index etc.

27. B) difference between carrying amount and the amount payable at maturity.

28. 11. A) disclose methods used under 9© above and 10 (a) above.