Classes of instruments

Learning objectives

• Distinguish a class of financial instruments from a measurement category.L1
• Determine a grouping into classes that is appropriate to the nature of the information and can be reconciled to the line items in the statement of financial position.L2

Normative references

• IFRS 7 §6When the Standard requires disclosures by class, the entity groups financial instruments into classes that are appropriate to the nature of the information disclosed and that take into account their characteristics, and provides sufficient information to permit reconciliation to the line items in the statement of financial position; the classes, determined by the entity, differ from the measurement categories of IFRS 9 (B1 to B3).

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

3 questions

• The classes of financial instruments used for the disclosures are identical to the IFRS 9 measurement categories.L1
• Where the standard requires disclosures by class, the entity provides enough information for the classes to be reconciled to the line items of the statement of financial position.L1
• Sora SA holds retail loans, corporate loans, listed bonds and derivatives (case facts). It prepares the disclosures by class. Which approach is consistent with the rule on grouping into classes?L2