CERTYNEX IFRS ACADEMY

What is the objective of IFRS 7?

To set the rules for recognising and measuring financial instruments, so that the entity chooses the measurement method applicable to each instrument it holds or issues.

To require disclosures that enable the assessment of the significance of financial instruments for financial position and performance, and of the nature and extent of their risks and how they are managed.

To define the classification of issued financial instruments between liabilities and equity, based on the issuer's contractual obligations and the settlement terms of the contract.

To require the entity to present its financial instruments at their net amount where a legal right of set-off exists at the end of the reporting period.