This document provides an overview of IFRS 7, which establishes disclosure requirements for financial instruments. IFRS 7 replaced IAS 30 and consolidated all financial instrument disclosure requirements. It requires both qualitative and quantitative disclosures about the significance of financial instruments for an entity's financial position and performance, as well as disclosures on the nature and extent of risks from financial instruments. Specifically, IFRS 7 mandates enhanced balance sheet and income statement disclosures, additional information on fair values and credit risk mitigation, and market risk sensitivity analysis. Proper implementation of IFRS 7 requires understanding its requirements and developing accounting policies, risk management frameworks, and financial reporting systems to comply.

1. WELCOME TO
Presentation on
“IFRS 7”

2. PREMIER UNIVERSITY
FACULTY OF BUSINESS STUDIES
Subject: Accounting Theory & Standards
Presentation on
“IFRS 7”
Submitted To:
Ms. Nusrat Jahan
Lecturer of Accounting,
Premier University, Chittagong.
Submitted By:
Name: Md Rahadul alim
ID NO: 0222210004083087
Batch: 34th
Major: Accounting
Program: MBA (1Year)
Premier University, Chittagong.

3. WHAT IS IFRS 7 ?
Financial Instruments: DISCLOSURES
In August 2005 the Board issued IFRS 7 Financial Instruments, which
replaced IAS 30 and carried forward the disclosure requirements in IAS 32
Financial Instruments: Disclosure and Presentation.

4. “IFRS 7”
• Adds certain new disclosures about financial instruments to those previously required
by IAS 32 financial instruments: disclosure and presentation.
• Replaces the disclosures previously required by IAS 30 disclosures in the financial
statements of banks and similar financial institutions.
• Puts all of those financial instruments disclosures together in a new standard on
financial instruments: Disclosures.
The remaining parts of IAS 32 deal only with financial instruments presentation matters.

5. IFRS 7 introduces:
• Requirements for enhanced balanced sheet and income
statement disclosure. Information about any provisions
against impaired assets
• Additional disclosure relating to the fair value of collateral and
other credit enhancements used to manage credit risk
• Market risk sensitivity analyses.

6. Disclosure requirements of IFRS 7:
IFRS 7 requires certain disclosures to be presented by category of instrument based on the IAS 39
measurement categories.
The two main categories of disclosures required by IFRS 7 are:
• Information about the significance of financial instruments.
• Information about the nature and extent of risks arising from financial instruments.
 IFRS 7 disclosures must be based on the accounting policies used for the financial statements prepared
in accordance with IFRS
 The IFRS 7 also requires information about the extent to which the entity is exposed to risks arising
from financial instruments, and a description of management’s objectives, policies and processes for
managing those risks.

7. Qualitative risk disclosures
• Risk exposures for each type of financial instrument
• Management’s objectives, policies, and processes for managing those risks
• Changes from the prior period
• Concentrations of risk –
 Credit risk
 Liquidity risk
 Market risk

8. Statement of financial position
Disclose the significance of financial instruments for an entity's financial position and
performance. This includes disclosures for each of the following categories:
– Financial assets measured at fair value through profit and loss, showing separately
those held for trading and those designated at initial recognition
– Held-to-maturity investments
– Loans and receivables
– Available-for-sale assets
– Financial liabilities measured at amortized cost
“IFRS 7”

9. Implementing sensitivity analysis / Value at Risk model
The requirements are much more onerous and include disclosure of:
• 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
• Disclosures about the concentration of risks.

10. Implementation plan and Challenges
An implementation plan that addresses the requirements of IFRS 7 must engage members of the
accounting, treasury and regulatory functions and should include:
• Understanding the disclosure requirements of IFRS 7 and arrange training for all key stakeholders
• Developing accounting policies on which the IFRS 7 disclosures will be based;
• Reviewing existing management reporting systems, policies, procedures, risk frameworks and the
nature and extent of quantitative data reported to key management personnel
• Developing a draft set of IFRS 7 compliant financial statements and agree the nature and extent
of all disclosures with one’s auditors;
“IFRS 7”

11. THANK YOU
Any Questions ?