Links with IFRS 7 and IFRS 13: fair value

Learning objectives

• Recognise that certain fair value disclosures for financial instruments (hierarchy, transfers between levels) are required in an interim financial report, with reference to the requirements of IFRS 7 and IFRS 13.L3, L4

Normative references

• IAS 34 §15BNon-exhaustive list of events and transactions to be disclosed when significant: write-down of inventories and its reversal; impairment losses on assets (financial assets, property, plant and equipment, intangible assets, contract assets, other assets) and their reversals; reversals of provisions for restructuring costs; acquisitions, disposals and commitments to purchase property, plant and equipment; litigation settlements; corrections of prior period errors; changes in the business or economic circumstances that affect the fair value of financial assets and financial liabilities; any loan default or breach of a loan agreement that has not been remedied; related party transactions; transfers between levels of the fair value hierarchy; changes in the classification of financial assets as a result of a change in their purpose or use; changes in contingent liabilities or contingent assets.
• IAS 34 §16AIn addition to significant events (paras. 15 to 15C), the entity provides, in the notes or elsewhere in the report by cross-reference to a document available on the same terms and at the same time (otherwise the report is incomplete), information normally reported on a financial year-to-date basis: consistency of accounting policies or a description of changes, seasonality or cyclicality, unusual items, changes in estimates, issues, repurchases and repayments of securities, dividends paid, segment information if IFRS 8 requires it annually, subsequent events, changes in the composition of the entity, fair value disclosures for financial instruments (cross-references to IFRS 13 and IFRS 7), investment entities, and disaggregation of revenue under IFRS 15. Subparagraph (m), added by IFRS 18 (a future requirement, 2027), covers management-defined performance measures.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• Which of the following may be matters for the notes to an interim report when they are significant to an understanding of the changes since the last annual report? More than one answer is possible.L3