CERTYNEX IFRS ACADEMY

A working paper describes the objective of the IFRS 7 disclosures on transfers of financial assets. Which of its sentences is wrong?

They aim to enable users to understand the relationship between transferred assets not derecognised in their entirety and the associated liabilities.

The transfer disclosures concern only transferred assets that have not been derecognised in their entirety.

They also aim to assess the nature of the risks of the entity's continuing involvement in derecognised assets.

They cover two situations: transferred assets not derecognised in their entirety and assets derecognised with the entity's continuing involvement.