Qualitative information

Learning objectives

• Explain the content of the qualitative disclosures: how risks arise and how they are managed.L1
• Prepare the structure of the qualitative disclosures by type of risk from the facts of a case.L2

Normative references

• IFRS 7 §33For each type of risk arising from financial instruments, the entity discloses the exposures to risk and how they arise, its objectives, policies and processes for managing the risk and the methods used to measure it, and any changes in these from the previous period.

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

3 questions

• Qualitative disclosures on risks may be limited to generalities, with no link to the entity's exposure or to how it manages its risks.L1
• Marée SA exports products invoiced in dollars and finances its inventories with a floating-rate loan (case facts). Which wording of qualitative disclosures on currency risk is consistent with the rule?L2
• Which statements about the qualitative disclosures on risks are correct? Several answers are possible.L2