Know Your Rights!!

The first time Ind AS adopters are having a nerve racking time in getting the pieces together for risk disclosures. The quintessential Ind AS 107 mandates disclosures which will aid the financial statement users to evaluate the nature and extent of risks arising from financial instruments and how the company manages those risks. Like the other financial instruments standards, scope of Ind AS 107 specifies that the standard applies to ALL the entities. So the myth that risk is for the financial services entities only has to disappear sooner. This disclosure standard merely sets out the amount of information reported to the management for the purpose of running the business which must be made available to the users. Risk Disclosures of two types are required: § Qualitative disclosures: Company has to provide a brief explanation of the their exposure to risk, how they arise and how these risks are measured and managed § Quantitative disclosures:    o Credit risk/ Co...

IFRS 9 - Financial Instruments much awaited amendment is finally out on November 19, 2013. The entities which need to  deal with the financial instruments in line with IFRS, are probably aware of multiple standards covering this really titanic topic: IAS 39, IFRS 9, IFRS 7, IAS 32 and partially IFRS 13.  The new standard - IFRS 9 - is still under development. Let's see what are the 3 main changes brought in the amended IFRS 9: Mandatory effective date of IFRS 9 (1 January 2015) was removed. It means that you can apply old IAS 39 after 31-12-2014 Financial Liabilities (Own Debt) at Fair Value has new requirements for the accounting and presentation of changes in the fair value when own debt is measured at fair value New hedge accounting rules! New hedging rules were long-awaited, because the older rules in IAS 39 are really strict and hard to apply.  Further post will explain Hedge Accounting in brief..Stay glued:)