IFRS 7 - Toolkit
Effects of the publication of IFRS 7 Financial Instruments: disclosures will apply to all capital market orientated companies from the 2007 fiscal year at the latest, i.e. there are markedly expanded minimum requirements for the disclosure of financial instruments. In this context closed risk reporting will be obligatory for the first time.
IFRS 7 relates to all financial instruments. Therefore, it is irrelevant if a reporting company possess only a few or a large number of instruments. The extent of disclosure is determined by the size of the risk alone.
The core of IFRS 7 is the disclosure of financial statement data to highlight the importance of financial instruments to the financial and earnings situation of a company.
Moreover the publication of sensitive information about risk control and risk management is also demanded. Here a differentiation has to be made between qualitative and quantitative entries in the categories “credit / default risk”, “liquidity risk” and “market price risk”.
To support the extensive and time-intensive determination of fair value on the basis of historical and current data (exchange rates and interest structures) and taking the product specifications into account (e.g. durations, currencies, nominals) FAS AG has developed an MS Excel based IFRS 7 Toolkit which can be easily adjusted to your individual requirements.
Using free parametrisable interest and exchange rate structures the IFRS 7 Toolkit also enables the company to perform fair value orientated scenario and sensitivity analyses. Thus even the results and equity effects resulting from heterogeneous financial instrument portfolios can be presented in a structured way that conforms to IFRS. The choice of either an English or German user interface also allows use at an international level.
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You can request further information about the IFRS 7 Toolkit using the link in this site or our contact form.
