Quantitative information and concentrations

Learning objectives

• Explain that the quantitative disclosures cover the exposure to each risk at the end of the reporting period and its concentration.L2
• Analyse a portfolio to identify the concentrations of risk to be documented.L2

Normative references

• IFRS 7 §34For each type of risk, the entity discloses summary quantitative data about its exposure at the end of the reporting period, based on the information provided internally to key management personnel, the disclosures required by paras. 35A to 42 to the extent not already provided, and concentrations of risk if not apparent from those disclosures (explained in B8); the sensitivity analysis is dealt with in para. 40.

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

2 questions

• Étoile SA has 70% of its receivables from one customer and 85% of its deposits with a single bank (case facts). Which conclusion is consistent with the quantitative disclosures on risks?L2
• A working paper describes the quantitative disclosures on a company's risks. Which of its sentences is wrong?L2