Please provide summary on Ind AS 107 - Financial Instruments: Disclosures
Please provide summary on Ind AS 107 - Financial Instruments: Disclosures The objective of this Indian Accounting Standard (Ind AS) is to require entities to provide disclosures in their financial statements that enable users to evaluate: (a) the significance of financial instruments for the entity’s financial position and performance; and (b) the nature and extent of risks arising from financial instruments to which the entity is exposed during the period and at the end of the reporting period, and how the entity manages those risks. The principles in this Ind AS complement the principles for recognising, measuring and presenting financial assets and financial liabilities in Ind AS 32, Financial Instruments: Presentation, and Ind AS 109, Financial Instruments. This Ind AS applies to recognised and unrecognised financial instruments. Recognised financial instruments include financial assets and financial liabilities that are within the scope of Ind AS 109. Unrecognised financial instruments include some financial instruments that, although outside the scope of Ind AS 109, are within the scope of this Ind AS. This Ind AS applies to contracts to buy or sell a non-financial item that are within the scope of Ind AS 109.
Dear Friend > AS 107 - Financial Instruments: Disclosures It deals with disclosures. Ind AS 107 sets out disclosure requirements that are intended to enable users to evaluate the significance of financial instruments for an entity’s financial position and performance, and to understand the nature and extent of risks arising from those financial instruments to which the entity is exposed. All entities that have financial instruments are affected–even simple instruments such as borrowings, accounts payable and receivable, cash and investments. Disclosures are required to be made for the risks including credit risk, liquidity risk and market risk. Further, Ind AS 107 and Ind AS 113 require disclosure of a three-level hierarchy for fair value measurement as well as some specific quantitative disclosures for financial instruments at the lowest level in the hierarchy. The disclosure requirements apply to all entities and not just to banks and financial institutions. Thanks