CERTYNEX IFRS ACADEMY

What is the second part of the objective of IFRS 7, alongside the significance of financial instruments for financial position and performance?

To enable users to assess the nature and extent of the risks from financial instruments at the reporting date.

To require each instrument to be classified as a liability or equity according to the substance of the terms of the contracts the entity has entered into rather than their legal form.

To describe the method for calculating expected credit losses and the stages into which the entity's financial assets are classified.

To present the cash flows from financing activities relating to the financial instruments that the entity has issued during the year.