杨灿-international gaap 201653 financial and disclosure

1、International Accounting and Auditing / International Financial Reporting Standards / Ernst Young / International GAAP 2016 / Chapter 53 Financial instruments: Presentation and disclosure / 2 SCOPE OF IFRS 7 2 SCOPE OF IFRS 72.1 Entities required to comply with IFRS 7Although IFRS 7 evolved from a p

2、roject to update IAS 30 (which applied only to banks and similar financial institutions) it applies to all entities preparing their financial statements in accordance with IFRS that have financial instruments. IFRS 7.BC6. The IASB considered exempting certain entities, including insurers, subsidiari

3、es and those that are small or medium- sized (SMEs), but decided that IFRS 7 should apply to all entities whilst keeping the decision in respect of SMEs under review in its related project. IFRS 7.BC9, BC10, BC11. The IASB has now issued an IFRS for SMEs that requires reduced disclosures about finan

4、cial instruments.2.2 Financial instruments within the scope of IFRS 7Sections 3 and 4 of Chapter 42 contain a detailed explanation of the scope of IFRS 7. It is important to recognise that the scope of IFRS 7 is generally somewhat wider than that of IAS 39 and IFRS 9. Therefore IFRS 7 can apply to i

5、nstruments that are not subject to the recognition and measurement provisions of IAS 39 or IFRS 9, for example finance leases and certain loan commitments. IFRS 7.4. Conversely, some financial instruments within the scope of IAS 39 or IFRS 9, particularly those held in disposal groups or as part of

6、discontinued operations, are not subject to all of the requirements in IFRS 7.2.3 Interim reportsIAS 34 Interim Financial Reporting sets out the minimum content of an interim financial report. When an event or transaction is significant to an understanding of the changes in an entitys financial posi

7、tion or performance since the last annual financial period, IAS 34 requires the report to provide an explanation of, and update to, the information included in the last annual financial statements. IAS 34.15. The standard emphasises that relatively insignificant updates need not be provided. IAS 34.

8、15A. The following disclosures which relate to financial instruments are required if significant: IAS 34.15Blosses recognised from the impairment of financial assets;changes in the business or economic circumstances that affect the fair value of the entitys financial assets and financial liabilities

9、, whether recognised at fair value or amortised cost;any loan default or breach of a loan agreement that has not been remedied on or before the end of the reporting period;transfers between levels of the fair value hierarchy used in the measurement of the fair value of financial instruments; andchan

10、ges in the classification of financial assets as a result of a change in the purpose or use of those assets.In considering the extent of disclosures necessary to meet the requirements above, IAS 34 refers to the guidance included in other IFRSs, IAS 34.15C which would include IFRS 7, but does not or

11、dinarily require compliance with all the requirements in those standards.IAS 34 also specifies additional disclosures to be given (normally on a financial year-to-date basis) about the fair value of financial instruments, including those discussed at 4.5 below and a number required by IFRS 13. IAS 3

12、4.16A(j). This requirement is not subject to the qualifications noted above and so, as discussed in further detail in Chapter 38 at 4.5, these disclosures should always be given unless the information is not material.The extent to which disclosures about offsetting of financial assets and financial

13、assets (see7.4.2 below) should be given in condensed interim financial statements was originally unclear.Printed 07 十月 2016 Page 1 of 2International Accounting and Auditing / International Financial Reporting Standards / Ernst Young / International GAAP 2016 / Chapter 53 Financial instruments: Prese

14、ntation and disclosure / 2 SCOPE OF IFRS 7 However, in September 2014 the IASB issued amendments to IFRS 7 clarifying that these disclosures need not be provided unless required by the more general requirements of IAS 34.Printed 07 十月 2016 Page 2 of 2International Accounting and Auditing / Internati

15、onal Financial Reporting Standards / Ernst Young / International GAAP 2016 / Chapter 53 Financial instruments: Presentation and disclosure / 3 STRUCTURING THE DISCLOSURES 3 STRUCTURING THE DISCLOSURESThe main text of IFRS 7 is supplemented by application guidance, which is an integral part of the st

16、andard,1 and by implementation guidance, which accompanies, but is not part of, the standard.2 The implementation guidance suggests possible ways of applying some of the requirements of the standard but, it is emphasised, does not create additional requirements. IFRS 7.IG1.Although the implementatio

17、n guidance discusses each disclosure requirement in IFRS 7 separately, disclosures would normally be presented as an integrated package and individual disclosures might satisfy more than one requirement. For example, information about concentrations of risk might also convey information about exposu

18、re to credit or other risk. IFRS 7.IG2. This chapter follows a similar approach whereby each topic is considered individually in the context of the requirements of the standard as well as related application and implementation guidance.3.1 Level of detailEntities need to decide, in the light of thei

19、r circumstances, how much detail to provide to satisfy the requirements of IFRS 7, how much emphasis to place on different aspects of the requirements and how information is aggregated to display the overall picture without combining information with different characteristics. It is necessary to str

20、ike a balance between overburdening financial statements with excessive detail that may not assist users of financial statements and obscuring important information as a result of too much aggregation. For example, important information should not be obscured by including it among a large amount of

21、insignificant detail. Similarly, information should not be aggregated so that it obscures important differences between individual transactions or associated risks. IFRS 7.B3.This means that not all of the information suggested, say, in the implementation guidance is necessarily required. IFRS 7.IG5

22、. On the other hand, there is a reminder that IAS 1 Presentation of Financial Statements requires additional disclosures when compliance with the specific requirements in IFRSs is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the ent

23、itys financial position and financial performance (see Chapter 3 at 4.1.1.A). IFRS 7.IG6.3.2 MaterialityThe implementation guidance to the original version of IFRS 7 drew attention to the definition of materiality in IAS 1 (see Chapter 3 at 4.1.5.A): IFRS 7(2010).IG3Omissions or misstatements of ite

24、ms are material if they could, individually or collectively, influence the economic decisions that users make on the basis of the financial statements. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. The size or nature of the item,

25、or a combination of both, could be the determining factor. IAS 1.7.It then noted that a specific disclosure requirement need not be satisfied if the information is not material IFRS 7(2010).IG3 and drew attention to the following explanation in IAS 1: IFRS 7(2010).IG4Assessing whether an omission or

26、 misstatement could influence economic decisions of users, and so be material, requires consideration of the characteristics of those users. The Framework for the Preparation and Presentation of Financial Statements states . that “users are assumed to have a reasonable knowledge of business and econ

27、omic activities and accounting and a willingness to study the information with reasonable diligence.”3 Therefore, the assessment needs to take into account how users with suchPrinted 07 十月 2016 Page 1 of 2International Accounting and Auditing / International Financial Reporting Standards / Ernst You

28、ng / International GAAP 2016 / Chapter 53 Financial instruments: Presentation and disclosure / 3 STRUCTURING THE DISCLOSURES attributes could reasonably be expected to be influenced in making economic decisions. IAS 1.7.The inclusion of such guidance could have been seen as curious given that it is

29、no more or less applicable to IFRS 7 than any other standard. What it amounted to was a degree of reassurance that entities with few financial instruments and few risks (for example a manufacturer whose only financial instruments are accounts receivable and accounts payable) will give few disclosure

30、s, something that was borne out in other references within the standard and accompanying material. IFRS 7.IN4, BC10.However, in May 2010, the IASB removed all references to materiality from IFRS 7 because they thought that some of these references could imply that other disclosures in IFRS 7 are req

31、uired even if those disclosures are not material, which was not the intention. IFRS 7.BC47A. Accordingly the above guidance continues to be relevant even though it has been removed from the standard.3.3 Classes of financial instrumentCertain disclosures required by IFRS 7 should be provided by class

32、 of financial instrument (see 4.2.4, 4.4.7, 4.5.1, 4.5.2, 5.2.2, 5.2.3 and 6 below). For these, entities should group financial instruments into classes that are appropriate to the nature of the information disclosed and take into account the characteristics of those instruments. IFRS 7.6.It is emph

33、asised that these classes should be determined by the entity and are, thus, distinct from the categories of financial instruments specified in IAS 39 or IFRS 9 which determine how financial instruments are measured and where changes in fair value are recognised. IFRS 7.B1. However, in determining cl

34、asses of financial instrument an entity should, as a minimum, distinguish instruments measured at amortised cost from those measured at fair value and treat as a separate class or classes those financial instruments outside the scope of IFRS 7. IFRS 7.B2.For disclosures given by class of instrument,

35、 sufficient information should be provided to permit the information to be reconciled to the line items presented in the statement of financial position. IFRS 7.6.123IFRS 7, Appendix B, Application guidance, para. after main heading. IFRS 7, Guidance on implementing, para. after main heading.In Sept

36、ember 2010 the IASB replaced the Framework with the Conceptual Framework for Financial Reporting, Chapter 3 of which contains guidance on materiality. However, the guidance on materiality in IAS 1 has not been updated to reflect this.Printed 07 十月 2016 Page 2 of 2International Accounting and Auditin

37、g / International Financial Reporting Standards / Ernst Young / International GAAP 2016 / Chapter 53 Financial instruments: Presentation and disclosure / 4 SIGNIFICANCE OF FINANCIAL INSTRUMENTS FOR AN ENTITYS FINANCIAL POSITION AND PERFORMANCE 4 SIGNIFICANCE OF FINANCIAL INSTRUMENTS FOR AN ENTITYS F

38、INANCIAL POSITION AND PERFORMANCEThe IASB decided that the disclosure requirements in this area should result from the following disclosure principle:An entity shall disclose information that enables users of its financial statements to evaluate the significance of financial instruments for its fina

39、ncial position and performance.Further, they concluded that this principle could not be satisfied unless other specified disclosures (which are dealt with at 4.1 to 4.5 below) are also provided. IFRS 7.7, BC13.4.1 Accounting policiesThe main body of IFRS 7 contains a reminder of IAS 1s requirement f

40、or an entity to disclose its significant accounting policies, comprising the measurement basis (or bases) used in preparing the financial statements and the other accounting policies used that are relevant to an understanding of the financial statements. IFRS 7.21.For financial assets or financial l

41、iabilities designated at fair value through profit or loss in accordance with IAS 39 (see Chapter 45 at 2.2), such disclosure may include: IFRS 7.B5(a)the nature of the financial assets or financial liabilities designated at fair value through profit or loss;the criteria for so designating such fina

42、ncial assets or financial liabilities on initial recognition; andhow the conditions in IAS 39 for such designation have been satisfied.For instruments designated to eliminate or significantly reduce a measurement or recognition inconsistency, this should include a narrative description of the circum

43、stances underlying the inconsistency that would otherwise arise.For groups of instruments that are managed and the performance evaluated on a fair value basis, this should include a narrative description of how designation at fair value through profit or loss is consistent with the entitys documente

44、d risk management or investment strategy.For financial assets and financial liabilities designated as measured at fair value through profit or loss in accordance with IFRS 9 (see Chapter 46 at 7), such disclosure may include: IFRS 7.B5(a), B5(aa)the nature of the financial assets or financial liabil

45、ities designated as measured at fair value through profit or loss;the criteria for designating financial liabilities on initial recognition; andhow the conditions or criteria in IFRS 9 for such designation have been satisfied.Other policies that might be appropriate include: IFRS 7.B5(b), (c), (e),

46、(f), (g)the criteria for designating financial assets as available for sale in accordance with IAS 39;whether regular way purchases and sales of financial assets are accounted for at trade date or at settlement date (see Chapter 47 at 2.2); andhow net gains or net losses on each category of financia

47、l instrument are determinedPrinted 07 十月 2016 Page 1 of 28International Accounting and Auditing / International Financial Reporting Standards / Ernst Young / International GAAP 2016 / Chapter 53 Financial instruments: Presentation and disclosure / 4 SIGNIFICANCE OF FINANCIAL INSTRUMENTS FOR AN ENTIT

48、YS FINANCIAL POSITION AND PERFORMANCE (see 4.2.1 below), for example whether the net gains or net losses on items measured at fair value through profit or loss include interest or dividend income.In our view, interest income and interest expense (including, for example, that arising on short positio

49、ns) should be treated consistently, i.e. both included or both excluded from the net gains and losses disclosed;the criteria an entity applying IAS 39 uses to determine that there is objective evidence that an impairment loss has occurred; andfor entities applying IAS 39, when the terms of financial

50、 assets that would otherwise be past due (see 5.2.2.C below) or impaired have been renegotiated, the accounting policy for financial assets that are the subject of renegotiated terms.In contrast to its specific requirements for the derecognition of financial liabilities, IAS 39 does not explicitly a

51、ddress whether or in what circumstances a financial asset whose terms are subject to renegotiation should be derecognised by the holder or whether it should be regarded as a continuation of the existing asset (see Chapter 50 at 3.4.1 and 3.4.2). Therefore, this could be an important accounting polic

52、y for banks and other financial institutions if they frequently renegotiate the terms of their loans and receivables.Such an accounting policy may also be relevant to entities applying IFRS 9, although when adopted, IFRS 7 is amended to specify additional disclosures about financial instruments that

53、 have been renegotiated and not derecognised (see 5.2.3 below).For entities applying IAS 39, when an allowance account (such as a bad debt provision) is used to reduce the carrying amount of financial assets impaired by credit losses, the accounting policies may need to indicate: IFRS 7.B5(d)the cri

54、teria for determining when the carrying amount of impaired financial assets is reduced directly (or, in the case of a reversal of a write-down, increased directly) and when the allowance account is used; andthe criteria for writing off amounts charged to the allowance account against the carrying am

55、ount of impaired financial assets (as set out at 4.4.7 below, a reconciliation of changes in the allowance account should be given).When IFRS 9 is adopted, the guidance immediately above is deleted and replaced by extensive new disclosure requirements about impairments which are covered primarily at

56、 5.2.3 below.The application guidance also contains a reminder that IAS 1 requires entities to disclose the judgements, apart from those involving estimations, that management has made in the process of applying the entitys accounting policies and that have the most significant effect on the amounts

57、 recognised in the financial statements (see Chapter 3 at 5.1.1.B). IFRS 7.B5.4.2 Income, expenses, gains and lossesUnder IFRS 7, entities are required to disclose various items of income, expense, gains and losses. The disclosures below may be provided either on the face of the financial statements

58、 or in the notes. IFRS 7.20.4.2.1 Gains and losses by measurement categoryThe IASB concluded that disclosure of net gains or net losses arising on the following categories of instrument is necessary to understand the financial performance of an entitys financial instruments given the different measurement bases in IAS 39: IFRS 7.20(a), BC33financial assets or financial liabilities at fair value through profit or loss, showing separately those on financial instruments designated as such upon initial recogniti