complete and full disclosure ifrs 7

​Providing a complete and full disclosure under IFRS 7 (Financial Instruments: Disclosures) requires an entity to give detailed information about the significance of financial instruments for its financial position and performance. This information is crucial for users of financial statements to understand the nature and extent of risks arising from financial instruments. Here’s a model framework for such a disclosure:

**Note X: Financial Instruments - IFRS 7 Disclosures**

1. **Scope and Context**:

   - An introductory statement about the purpose of the disclosures, covering the nature and extent of risks arising from financial instruments.

2. **Accounting Policies for Financial Instruments**:

   - Description of the accounting policies and methods used for recognizing, measuring, and derecognizing financial instruments.

   - Policies for hedge accounting, if applicable.

3. **Financial Instruments by Category**:

   - Breakdown of financial assets and liabilities into categories as defined in IFRS 9 (e.g., at fair value through profit or loss, at amortized cost).

   - Carrying amounts for each category.

4. **Fair Value Measurements**:

   - Disclosure of fair value hierarchy, valuation techniques, and inputs used.

   - Reconciliation of recurring fair value measurements from beginning to end of the period.

5. **Risk Management Objectives and Policies**:

   - Description of the entity’s financial risk management objectives and policies, including its risk management strategy and processes.

   - Information on the use of financial instruments for hedging purposes.

6. **Credit Risk**:

   - Information on credit risk exposure and how it is managed.

   - Disclosure of credit quality, including aging analysis and impairment.

   - Maximum exposure to credit risk without taking account of any collateral.

7. **Liquidity Risk**:

   - Liquidity risk management policies.

   - Maturity analysis of financial liabilities.

8. **Market Risk**:

   - Sensitivity analysis for market risks (e.g., interest rate risk, currency risk, price risk).

   - Explanation of methods and assumptions used in preparing the sensitivity analysis.

9. **Collateral**:

   - Information about financial assets pledged as collateral.

   - Terms and conditions associated with collateral and its fair value.

10. **Hedge Accounting**:

    - If hedge accounting is applied, information about the hedging instruments and their effectiveness.

11. **Capital Management**:

    - Information on how the entity manages its capital structure.

    - Compliance with externally imposed capital requirements, if applicable.

12. **Comparative Information**:

    - Comparative information for previous periods, as required under IFRS.

This framework is a general outline and should be adapted based on the specific circumstances and financial instruments of the reporting entity. The disclosures would typically include detailed numerical data, supplemented by narrative descriptions where necessary, to provide a comprehensive understanding of the entity's use of financial instruments and the risks involved.