CERTYNEX IFRS ACADEMY

A regional bank mainly holds loans, deposits and interest rate derivatives. A colleague comments on the risks to be documented at the reporting date. Which of the colleague's sentences is wrong?

As the entity mainly holds loans, documenting credit risk is enough.

The entity provides disclosures that enable users to assess the nature and extent of the risks to which it is exposed at the end of the reporting period.

The risks to be documented include in particular credit risk, liquidity risk and market risk.

The disclosures also cover how the entity manages the risks arising from its financial instruments.