How does Pfrs 7 define liquidity risk?
Liquidity risk is defined in Appendix A of IFRS 7 Financial Instruments: Disclosures as: ‘The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial assets. ‘
What is financial assets at Fvtpl?
A financial asset is measured at fair value through profit or loss (FVTPL), unless it is measured at amortised cost or at fair value through other comprehensive income (FVOCI).
What is the objective of IFRS 7?
The objective of IFRS 7 is to provide disclosures in their financial statements that enables users to evaluate the significance of financial instruments for the entity’s financial position and performance as well as the nature and extent of risks arising from financial instruments to which the entity is exposed during …
What is financial assets at fair value through other comprehensive income?
Fair value through other comprehensive income—financial assets are classified and measured at fair value through other comprehensive income if they are held in a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.
What are financial assets examples?
Cash, stocks, bonds, mutual funds, and bank deposits are all are examples of financial assets. Unlike land, property, commodities, or other tangible physical assets, financial assets do not necessarily have inherent physical worth or even a physical form.
Which of the following is not financial assets?
A nonfinancial asset is determined by the value of its physical traits and includes items such as real estate and factory equipment. Intellectual property, such as patents, are also considered nonfinancial assets. Nonfinancial assets play an important role in determining a company’s market value and ability to borrow.
Why is IFRS 7 so important?
The objective of IFRS 7 is to require an entity that holds or issues financial instruments to disclose information that enables readers of its financial statements to evaluate the significance of financial instruments for its financial position and performance and the nature and extent of risks arising from those …
What should be classified as a financial asset?
Under IAS 39, financial assets are classified into one of four categories:
- Held to maturity (HTM)
- Loans and receivables (LAR)
- Fair value through profit or loss (FVTPL)
- Available for sale (AFS).
Which assets are eligible for loss allowances under hkfrs?
(ii) financial assets that are credit-impaired at the reporting date (but that are not purchased or originated credit-impaired); and (iii) trade receivables, contract assets or lease receivables for which the © Copyright 27 HKFRS 7 (September 2018) loss allowances are measured in accordance with paragraph 5.5.15 of HKFRS 9.
Are transactions hedged under hkfrs 7 BC?
© Copyright 21 HKFRS 7 BC (September 2018) transactions are hedged. The Board acknowledged that this would potentially provide competitors with insight into an entity’s costing structure.
What is hkfrs 7 financial instruments disclosure?
Hong Kong Financial Reporting Standard 7 Financial Instruments: Disclosures (HKFRS 7) is set out in paragraphs 1-45 and Appendices A-DC. All the paragraphs have equal authority.
What happens if an entity applies an amendment to hkfrs 7?
If an entity applies the amendments for an earlier period it shall disclose that fact. 44M Disclosures—Transfers of Financial Assets (Amendments to HKFRS 7), issued in October 2010, deleted paragraph 13 and added paragraphs 42A–42H and B29–B39.