The IASB has recently published an exposure draft (‘the ED’) that proposes to amend IFRS 7 “Financial instruments: Disclosures” to require additional disclosures about debt investments which (if approved) would be applicable to December 2008 year ends. The ED requires these disclosures for all debt investments (other than those classified at fair value through profit and loss) not just those that are impaired or those that are available for sale investments. The ED's proposals are extensive and, for some entities, the necessary information may not be readily available. We advise members to discuss with their treasury and finance staff and others in the corporate reporting function likely to be affected as soon as possible to plan how they will obtain the necessary information should the ED's proposals be confirmed. The specific proposed additional disclosures are:
For all investments in debt instruments other than those classified as at fair value through profit or loss:An entity shall provide the information required by this paragraph in tabular format.
- pre-tax profit or loss as though the instruments had been:
- classified as at fair value through profit or loss; and
- accounted for at amortised cost.
- the following amounts in a way that permits comparison of:
- the carrying amount in the statement of financial position;
- fair value; and
- amortised cost.
The ED proposes that the new disclosures will be required for December 2008 year end, although the EU endorsement process is unclear at this stage. The full exposure draft can be viewed on the IASB’s web site: http://www.iasb.org/News/Press+Releases/IASB+proposes+additional+disclos... The ACT is grateful for the co-operation of PricewaterhouseCoopers LLP in the preparation of this note to members.