IFRS 7, "Financial Instruments: Disclosures,"

Here are the key aspects of IFRS 7:

1. Scope: IFRS 7 applies to all types of financial instruments, including derivatives, and covers recognized and unrecognized financial instruments. It is applicable to all entities and complements the principles for recognizing, measuring, and presenting financial instruments set out in IAS 32, "Financial Instruments: Presentation," and IFRS 9, "Financial Instruments."

2. Classes of Financial Instruments: Entities are required to group their financial instruments into classes that are appropriate to the nature of the information disclosed and that take into account the characteristics of those financial instruments.

3. Disclosure of Financial Instrument Terms: Entities must disclose the terms and conditions of each class of financial instruments, including information about their nature and extent, and specific terms that may affect the amount, timing, and certainty of future cash flows.

4. Significance of Financial Instruments: IFRS 7 requires disclosure of the significance of financial instruments for an entity’s financial position and performance. This includes information about the entity's exposure to risk and how those risks are managed.

5. Risk Management Practices: Entities must disclose their financial risk management objectives and policies, including their policies for hedging each major type of forecasted transaction for which hedge accounting is used.

6. Risk Exposures: The standard requires entities to disclose information about their exposure to risks arising from financial instruments, including credit risk, liquidity risk, and market risk. This should include qualitative and quantitative data.

7. Fair Value Measurements: Entities must disclose the fair value of each class of financial assets and financial liabilities in a way that permits it to be compared with its carrying amount. For financial instruments not measured at fair value in the statement of financial position, entities must disclose their fair value if the fair value can be measured reliably.

8. Hierarchy of Fair Value Measurement: The disclosure of fair value measurements using a fair value hierarchy (which reflects the significance of the inputs used in making the measurements) is required.

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