IFRS 7 summary and timeline
A summary of IFRS 7 Financial Instruments: Disclosures, including information on current proposals and a timeline of past amendments, announcements, exposure drafts and consultations.
Summary
IFRS 7 requires two main categories of financial instruments disclosure:
- Information about the significance of financial instruments on financial performance and position, including:
- Carrying value of each of the categories of financial instrument
- Amounts recognised in profit or loss with respect to financial instruments
- Descriptions of hedging arrangements
- Information about fair values of each class of financial instrument
- Information about the nature and extent of risks arising from financial instruments, including:
- Qualitative disclosures describing risk exposures for each type of financial instrument and the management of risk
- Quantitative disclosures including summary quantitative data about exposure to risk at the reporting date and specific exposure to credit, liquidity and market risk.
Current proposals
- The Board issued ED/2019/7 General Presentation and Disclosures in December 2019. The exposure draft proposes a new IFRS Standard to replace IAS 1. One of the proposed changes is to move paragraphs currently included in IAS 1 and relating to the disclosure of financial instruments classified as equity into IFRS 7.
- In 2021 the Board issued ED/2021/10 Supplier Finance Arrangements, proposing amendments to IAS 7 and IFRS 7. The ED uses ‘ supplier finance arrangements’ to refer to reverse factoring arrangements whereby a buyer enters into an arrangement under which it (or its suppliers) can access financing for amounts it owes to suppliers. The proposed amendments to IFRS 7 will introduce additional disclosure requirements about supplier finance arrangements in order to provide users with the information that they need to understand the effects of the arrangements.
Timeline
| Date | Update |
|---|---|
| 5 January 2021 | UK-adoption of Amendments for IBOR Phase 2 and Amendments to IFRS 4 The Interest Rate Benchmark Reform—Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) was adopted for use in the UK and is effective for annual periods beginning on or after 1 January 2021. |
| 27 August 2020 | IASB issues Interest Rate Benchmark Reform Phase 2 – amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Effective for annual periods starting on or after 1 January 2021. |
| 26 September 2019 | IASB issues Interest Rate Benchmark Reform Phase 1 – amendments to IFRS 9, IAS 39 and IFRS 7 Effective for annual periods starting on or after 1 January 2020. |
| 25 September 2014 |
IASB issues Improvements to IFRSs 2014 (amendments to IFRS 7) Effective for annual periods starting on or after 1 January 2016. |
| 16 December 2011 | IASB issues Mandatory Effective Date and Transition Disclosures (amendments to IFRS 7) Effective for annual periods starting on or after 1 January 2015 or when IFRS 9 is first applied. |
| 16 December 2011 | IASB issues Disclosures – Offsetting Financial Assets and Financial Liabilities (amendments to IFRS 7) Effective for annual periods starting on or after 1 January 2013. |
| 7 October 2010 | IASB issues Disclosures – Transfers of Financial Assets (amendments to IFRS 7) Effective for annual periods starting on or after 1 July 2011. |
| 6 May 2010 | IASB issues Improvements to IFRSs (amendments to IFRS 7) Effective for annual periods starting on or after 1 January 2011. |
| 5 March 2009 | IASB issues Improving Disclosures about Financial Instruments Effective for annual periods starting on or after 1 January 2009. |
| 13 October 2008 | IASB issues Reclassification of Financial Assets (amendments to IFRS 7) Effective 1 July 2008. |
| 22 May 2008 | IASB issues Improvements to IFRSs (amendments to IFRS 7) Effective for annual periods starting on or after 1 January 2009. |
| 18 August 2005 | IASB issues IFRS 7 Effective for annual periods starting on or after 1 January 2007. |
Looking for the standard?
Practical guidance on this standard is now on our main IFRS 7 Financial Instruments: Disclosures page, with links to eIFRS, the full text standard, eBooks and other resources.
