IFRS 7 Financial Instruments: Disclosures — Accounting glossary

Disclosures address the significance of instruments for financial position and performance and exposure to risks such as credit, liquidity and market risk, subject to the standard’s detailed requirements and amendments. IFRS 7 is a disclosure standard; recognition and measurement of most instruments are addressed by IFRS 9, and liability/equity presentation by IAS 32. Disclosures should reflect the entity’s actual exposures and management, not merely reproduce generic wording.

Worked example

A company has material foreign-currency borrowings and trade receivables. It assesses the applicable disclosures about the instruments and the resulting market, liquidity and credit risks under IFRS 7.

Common mistake

Assuming IFRS 7 determines all measurement of loans or that one generic risk paragraph necessarily satisfies every required disclosure.

Where it appears in your exams

Qualification	Exam	Relationship	Period
ACCA	FR	Supporting	September 2026–June 2027
ACCA	SBR	Supporting	September 2026–June 2027