Following on the Financial Instruments Disclosures Part 1—where we have discussed about disclosures of financial instruments by categories, reclassifications disclosures, derecognition of financial assets disclosures, and collateral disclosure, I am going to complete the series through this post.

Before going to the part 2, please note that IFRS 7 (“Financial Instruments: Disclosures”) applies to those financial instruments to which IAS 32 applies, with the additional exclusion of equity instruments (including puttable instruments classified as equity).

As promised, Part 2—the final series, is going to discuss about: disclosures for impairment allowance disclosures, disclosures in the statement of comprehensive income, hedge accounting disclosures, fair value disclosures, disclosures in lieu of fair value disclosures, necessary notes to the fair value hierarchy-based disclosures, and three types of risks that must be shown in financial instruments—credit risk, market risk, and liquidity risk.