INDIAN ACCOUNTING STANDARD 107

FINANCIAL INSTRUMENTS: DISCLOSURES

CONTENTS
from paragraph
OBJECTIVE 1
SCOPE 3
CLASSES OF FINANCIAL INSTRUMENTS AND LEVEL OF 6
DISCLOSURE
SIGNIFICANCE OF FINANCIAL INSTRUMENTS FOR
FINANCIAL POSITION AND PERFORMANCE 7
Balance sheet 8
Statement of profit and loss 20
Other disclosures 21
NATURE AND EXTENT OF RISKS ARISING FROM
FINANCIAL INSTRUMENTS 31
Qualitative disclosures 33
Quantitative disclosures 34
TRANSFERS OF FINANCIAL ASSETS 42A
Transferred financial assets that are not derecognised in 42D
their entirety
Transferred financial assets that are derecognised in their 42E
entirety
Supplementary information 42H
EFFECTIVE DATE AND TRANSITION 43
APPENDICES
Appendix A- Defined terms
Appendix B- Application guidance
Appendix C- References to matters contained in other
Indian Accounting Standards
Appendix 1- Comparison with IFRS 7, Financial
Instruments: Disclosures
 Ind AS 107, Financial Instruments: Disclosures

Indian Accounting Standard (Ind AS) 107

Financial Instruments: Disclosures#

(This Indian Accounting Standard includes paragraphs set in bold type and plain
type, which have equal authority. Paragraphs in bold type indicate the main
principles.)

Objective
1 The objective of this Indian Accounting Standard (Ind AS) is to
require entities to provide disclosures in their financial statements
that enable users to evaluate:
(a) the significance of financial instruments for the entity’s
financial position and performance; and
(b) the nature and extent of risks arising from financial
instruments to which the entity is exposed during the period
and at the end of the reporting period, and how the entity
manages those risks.
2 The principles in this Ind AS complement the principles for
recognising, measuring and presenting financial assets and financial
liabilities in Ind AS 32, Financial Instruments: Presentation, and Ind
AS 109, Financial Instruments.

Scope
3 This Ind AS shall be applied by all entities to all types of financial
instruments, except:
(a) those interests in subsidiaries, associates or joint ventures
that are accounted for in accordance with Ind AS 110,
Consolidated Financial Statements, Ind AS 27, Separate
Financial Statements or Ind AS 28, Investments in Associates
and Joint Ventures. However, in some cases, Ind AS 110, Ind
AS 27 or Ind AS 28 require or permit an entity to account for

#This Ind AS was notified vide G.S.R. 111(E) dated 16th February, 2015 and was
amended vide Notification No. G.S.R. 365(E) dated 30th March, 2016, G.S.R. 310(E)
dated 28th March, 2018, G.S.R. 273(E) dated 30th March, 2019, G.S.R. 463(E) dated
24th July, 2020 and G.S.R. 419(E) dated 18th June, 2021.
 Ind AS 107, Financial Instruments: Disclosures

an interest in a subsidiary, associate or joint venture using Ind

AS 109; in those cases, entities shall apply the requirements
of this Ind AS and, for those measured at fair value, the
requirements of Ind AS 113, Fair Value Measurement. Entities
shall also apply this Ind AS to all derivatives linked to
interests in subsidiaries, associates or joint ventures unless
the derivative meets the definition of an equity instrument in
Ind AS 32.
(b) employers’ rights and obligations arising from employee
benefit plans, to which Ind AS 19, Employee Benefits, applies.
(c) [Refer Appendix 1]
(d) insurance contracts as defined in Ind AS 104, Insurance
Contracts. However, this Ind AS applies to derivatives that are
embedded in insurance contracts if Ind AS 109 requires the
entity to account for them separately. Moreover, an issuer
shall apply this Ind AS to financial guarantee contracts if the
issuer applies Ind AS 109 in recognising and measuring the
contracts, but shall apply Ind AS 104 if the issuer elects, in
accordance with paragraph 4(d) of Ind AS 104, to apply Ind
AS 104 in recognising and measuring them.
(e) financial instruments, contracts and obligations under share-
based payment transactions to which Ind AS 102, Share-
based Payment, applies, except that this Ind AS applies to
contracts within the scope of Ind AS 109.
(f) instruments that are required to be classified as equity
instruments in accordance with paragraphs 16A and 16B or
paragraphs 16C and 16D of Ind AS 32.
4 This Ind AS applies to recognised and unrecognised financial
instruments. Recognised financial instruments include financial
assets and financial liabilities that are within the scope of Ind AS
109. Unrecognised financial instruments include some financial
instruments that, although outside the scope of Ind AS 109, are
within the scope of this Ind AS.
5 This Ind AS applies to contracts to buy or sell a non-financial item
that are within the scope of Ind AS 109.
 Ind AS 107, Financial Instruments: Disclosures

5A 2The credit risk disclosure requirements in paragraphs 35A to 35N

apply to those rights that Ind AS 115, Revenue from Contracts with
Customers specifies are accounted for in accordance with Ind AS
109 for the purposes of recognising impairment gains or losses. Any
reference to financial assets or financial instruments in these
paragraphs shall include those rights unless otherwise specified.

Classes of financial instruments and level of

disclosure
6 When this Ind AS requires disclosures by class of financial
instrument, an entity shall group 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. An entity shall provide sufficient information to permit
reconciliation to the line items presented in the balance sheet.

Significance of financial instruments for financial

position and performance
7 An entity shall disclose information that enables users of its
financial statements to evaluate the significance of financial
instruments for its financial position and performance.

Balance sheet
Categories of financial assets and financial liabilities
8 The carrying amounts of each of the following categories, as
specified in Ind AS 109, shall be disclosed either in the balance
sheet or in the notes:
(a) financial assets measured at fair value through profit or loss,
showing separately (i) those designated as such upon initial
recognition or subsequently in accordance with paragraph
6.7.1 of Ind AS 109 and (ii) those mandatorily measured at
fair value through profit or loss in accordance with Ind AS
109.

2 Substituted vide Notification No. G.S.R. 365(E) dated 30th March, 2016 and,
thereafter, substituted vide Notification No. G.S.R. 310(E) dated 28th March, 2018.
 Ind AS 107, Financial Instruments: Disclosures

(b)- (d) [Refer Appendix 1]

(e) financial liabilities at fair value through profit or loss, showing
separately (i) those designated as such upon initial
recognition or subsequently in accordance with paragraph
6.7.1 of Ind AS 109 and (ii) those that meet the definition of
held for trading in Ind AS 109 .
(f) financial assets measured at amortised cost.
(g) financial liabilities measured at amortised cost.
(h) financial assets measured at fair value through other
comprehensive income, showing separately (i) financial
assets that are measured at fair value through other
comprehensive income in accordance with paragraph 4.1.2A
of Ind AS 109; and (ii) investments in equity instruments
designated as such upon initial recognition in accordance with
paragraph 5.7.5 of Ind AS 109.
Financial assets or financial liabilities at fair value through
profit or loss
9 If the entity has designated as measured at fair value through profit
or loss a financial asset (or group of financial assets) that would
otherwise be measured at fair value through other comprehensive
income or amortised cost, it shall disclose:
(a) the maximum exposure to credit risk (see paragraph 36(a)) of
the financial asset (or group of financial assets) at the end of
the reporting period.
(b) the amount by which any related credit derivatives or similar
instruments mitigate that maximum exposure to credit risk
(see paragraph 36(b)).
(c) the amount of change, during the period and cumulatively, in
the fair value of the financial asset (or group of financial
assets) that is attributable to changes in the credit risk of the
financial asset determined either:
(i) as the amount of change in its fair value that is not
attributable to changes in market conditions that give
rise to market risk; or
 Ind AS 107, Financial Instruments: Disclosures

(ii) using an alternative method the entity believes more

faithfully represents the amount of change in its fair
value that is attributable to changes in the credit risk
of the asset.
Changes in market conditions that give rise to market risk
include changes in an observed (benchmark) interest rate,
commodity price, foreign exchange rate or index of prices or
rates.
(d) the amount of the change in the fair value of any related credit
derivatives or similar instruments that has occurred during the
period and cumulatively since the financial asset was
designated.
10 If the entity has designated a financial liability as at fair value
through profit or loss in accordance with paragraph 4.2.2 of Ind AS
109 and is required to present the effects of changes in that liability’s
credit risk in other comprehensive income (see paragraph 5.7.7 of
Ind AS 109), it shall disclose:
(a) the amount of change, cumulatively, in the fair value of the
financial liability that is attributable to changes in the credit
risk of that liability (see paragraphs B5.7.13-B5.7.20 of Ind
AS 109 for guidance on determining the effects of changes in
a liability’s credit risk).
(b) the difference between the financial liability’s carrying amount
and the amount the entity would be contractually required to
pay at maturity to the holder of the obligation.
(c) any transfers of the cumulative gain or loss within equity
during the period including the reason for such transfers.
(d) if a liability is derecognised during the period, the amount (if
any) presented in other comprehensive income that was
realised at derecognition.
10A If an entity has designated a financial liability as at fair value through
profit or loss in accordance with paragraph 4.2.2 of Ind AS 109 and
is required to present all changes in the fair value of that liability
(including the effects of changes in the credit risk of the liability) in
profit or loss (see paragraphs 5.7.7 and 5.7.8 of Ind AS 109), it shall
disclose:
 Ind AS 107, Financial Instruments: Disclosures

(a) the amount of change, during the period and cumulatively, in

the fair value of the financial liability that is attributable to
changes in the credit risk of that liability (see paragraphs
B5.7.13–B5.7.20 of Ind AS 109 for guidance on determining
the effects of changes in a liability’s credit risk); and
(b) the difference between the financial liability’s carrying amount
and the amount the entity would be contractually required to
pay at maturity to the holder of the obligation.
11 The entity shall also disclose:
(a) a detailed description of the methods used to comply with the
requirements in paragraphs 9(c), 10(a) and 10A(a) and
paragraph 5.7.7(a) of Ind AS 109, including an explanation of
why the method is appropriate.
(b) if the entity believes that the disclosure it has given, either in
the balance sheet or in the notes, to comply with the
requirements in paragraph 9(c), 10(a) or 10A(a) or paragraph
5.7.7(a) of Ind AS 109 does not faithfully represent the
change in the fair value of the financial asset or financial
liability attributable to changes in its credit risk, the reasons
for reaching this conclusion and the factors it believes are
relevant.
(c) a detailed description of the methodology or methodologies
used to determine whether presenting the effects of changes
in a liability’s credit risk in other comprehensive income
would create or enlarge an accounting mismatch in profit or
loss (see paragraphs 5.7.7 and 5.7.8 of Ind AS 109). If an
entity is required to present the effects of changes in a
liability’s credit risk in profit or loss (see paragraph 5.7.8 of
Ind AS 109), the disclosure must include a detailed
description of the economic relationship described in
paragraph B5.7.6 of Ind AS 109.
Investments in equity instruments designated at fair value
through other comprehensive income
11A If an entity has designated investments in equity instruments to be
measured at fair value through other comprehensive income, as
permitted by paragraph 5.7.5 of Ind AS 109, it shall disclose:
(a) which investments in equity instruments have been
 Ind AS 107, Financial Instruments: Disclosures

designated to be measured at fair value through other

comprehensive income.
(b) the reasons for using this presentation alternative.
(c) the fair value of each such investment at the end of the
reporting period.
(d) dividends recognised during the period, showing separately
those related to investments derecognised during the
reporting period and those related to investments held at the
end of the reporting period.
(e) any transfers of the cumulative gain or loss within equity
during the period including the reason for such transfers.
11B If an entity derecognised investments in equity instruments
measured at fair value through other comprehensive income during
the reporting period, it shall disclose:
(a) the reasons for disposing of the investments.
(b) the fair value of the investments at the date of derecognition.
(c) the cumulative gain or loss on disposal.

Reclassification
12-12A [Refer Appendix 1]
12B An entity shall disclose if, in the current or previous reporting
periods, it has reclassified any financial assets in accordance with
paragraph 4.4.1 of Ind AS 109. For each such event, an entity shall
disclose:
(a) the date of reclassification.
(b) a detailed explanation of the change in business model and a
qualitative description of its effect on the entity’s financial
statements.
(c) the amount reclassified into and out of each category.
12C For each reporting period following reclassification until
derecognition, an entity shall disclose for assets reclassified out of
the fair value through profit or loss category so that they are
measured at amortised cost or fair value through other
comprehensive income in accordance with paragraph 4.4.1 of Ind
 Ind AS 107, Financial Instruments: Disclosures

AS 109:
(a) the effective interest rate determined on the date of
reclassification; and
(b) the interest revenue recognised.
12D If, since its last annual reporting date, an entity has reclassified
financial assets out of the fair value through other comprehensive
income category so that they are measured at amortised cost or out
of the fair value through profit or loss category so that they are
measured at amortised cost or fair value through other
comprehensive income it shall disclose:
(a) the fair value of the financial assets at the end of the reporting
period; and
(b) the fair value gain or loss that would have been recognised in
profit or loss or other comprehensive income during the
reporting period if the financial assets had not been
reclassified.
13 [Refer Appendix 1]
Offsetting financial assets and financial liabilities
13A The disclosures in paragraphs 13B–13E supplement the other
disclosure requirements of this Ind AS and are required for all
recognised financial instruments that are set off in accordance with
paragraph 42 of Ind AS 32. These disclosures also apply to
recognised financial instruments that are subject to an enforceable
master netting arrangement or similar agreement, irrespective of
whether they are set off in accordance with paragraph 42 of Ind AS
32.
13B An entity shall disclose information to enable users of its financial
statements to evaluate the effect or potential effect of netting
arrangements on the entity’s financial position. This includes the
effect or potential effect of rights of set-off associated with the
entity’s recognised financial assets and recognised financial
liabilities that are within the scope of paragraph 13A.
13C To meet the objective in paragraph 13B, an entity shall disclose, at
the end of the reporting period, the following quantitative information
separately for recognised financial assets and recognised financial
liabilities that are within the scope of paragraph 13A:
 Ind AS 107, Financial Instruments: Disclosures

(a) the gross amounts of those recognised financial assets and

recognised financial liabilities;
(b) the amounts that are set-off in accordance with the criteria in
paragraph 42 of Ind AS 32 when determining the net amounts
presented in the statement of financial position;
(c) the net amounts presented in the balance sheet;
(d) the amounts subject to an enforceable master netting
arrangement or similar agreement that are not otherwise
included in paragraph 13C(b), including:
(i) amounts related to recognised financial instruments
that do not meet some or all of the offsetting criteria in
paragraph 42 of Ind AS 32; and
(ii) amounts related to financial collateral (including cash
collateral); and
(e) the net amount after deducting the amounts in (d) from the
amounts in (c) above.
The information required by this paragraph shall be presented in a
tabular format, separately for financial assets and financial
liabilities, unless another format is more appropriate.
13D The total amount disclosed in accordance with paragraph 13C(d)
for an instrument shall be limited to the amount in paragraph
13C(c) for that instrument.
13E An entity shall include a description in the disclosures of the rights
of set-off associated with the entity’s recognised financial assets
and recognised financial liabilities subject to enforceable master
netting arrangements and similar agreements that are disclosed in
accordance with paragraph 13C(d), including the nature of those
rights.
13F If the information required by paragraphs 13B–13E is disclosed in
more than one note to the financial statements, an entity shall
cross-refer between those notes.
Collateral
14 An entity shall disclose:
(a) the carrying amount of financial assets it has pledged as
collateral for liabilities or contingent liabilities, including
 Ind AS 107, Financial Instruments: Disclosures

amounts that have been reclassified in accordance with

paragraph 3.2.23(a) of Ind AS 109; and
(b) the terms and conditions relating to its pledge.
15 When an entity holds collateral (of financial or non-financial assets)
and is permitted to sell or repledge the collateral in the absence of
default by the owner of the collateral, it shall disclose:
(a) the fair value of the collateral held;
(b) the fair value of any such collateral sold or repledged, and
whether the entity has an obligation to return it; and
(c) the terms and conditions associated with its use of the
collateral.
Allowance account for credit losses
16 [Refer Appendix 1]
16A The carrying amount of financial assets measured at fair value
through other comprehensive income in accordance with paragraph
4.1.2A of Ind AS 109 is not reduced by a loss allowance and an
entity shall not present the loss allowance separately in the balance
sheet as a reduction of the carrying amount of the financial asset.
However, an entity shall disclose the loss allowance in the notes to
the financial statements.
Compound financial instruments with multiple embedded
derivatives
17 If an entity has issued an instrument that contains both a liability and
an equity component (see paragraph 28 of Ind AS 32) and the
instrument has multiple embedded derivatives whose values are
interdependent (such as a callable convertible debt instrument), it
shall disclose the existence of those features.
Defaults and breaches
18 For loans payable recognised at the end of the reporting period, an
entity shall disclose:
(a) details of any defaults during the period of principal, interest,
sinking fund, or redemption terms of those loans payable;
(b) the carrying amount of the loans payable in default at the end
of the reporting period; and
 Ind AS 107, Financial Instruments: Disclosures

(c) whether the default was remedied, or the terms of the loans
payable were renegotiated, before the financial statements
were approved for issue.
19 If, during the period, there were breaches of loan agreement terms
other than those described in paragraph 18, an entity shall disclose
the same information as required by paragraph 18 if those breaches
permitted the lender to demand accelerated repayment (unless the
breaches were remedied, or the terms of the loan were renegotiated,
on or before the end of the reporting period).

Statement of profit and loss

Items of income, expense, gains or losses
20 An entity shall disclose the following items of income, expense,
gains or losses either in the statement of profit and loss or in the
notes:
(a) net gains or net losses on:
(i) financial assets or financial liabilities measured at fair
value through profit or loss, showing separately those
on financial assets or financial liabilities designated as
such upon initial recognition or subsequently in
accordance with paragraph 6.7.1 of Ind AS 109, and
those on financial assets or financial liabilities that are
mandatorily measured at fair value through profit or
loss in accordance with Ind AS 109 (eg financial
liabilities that meet the definition of held for trading in
Ind AS 109). For financial liabilities designated as at
fair value through profit or loss, an entity shall show
separately the amount of gain or loss recognised in
other comprehensive income and the amount
recognised in profit or loss.
(ii)- (iv) [Refer Appendix 1]
(v) financial liabilities measured at amortised cost.
(vi) financial assets measured at amortised cost.
(vii) investments in equity instruments designated at fair
value through other comprehensive income in
accordance with paragraph 5.7.5 of Ind AS 109.
 Ind AS 107, Financial Instruments: Disclosures

(viii) financial assets measured at fair value through other

comprehensive income in accordance with paragraph
4.1.2A of Ind AS 109, showing separately the amount of
gain or loss recognised in other comprehensive income
during the period and the amount reclassified upon
derecognition from accumulated other comprehensive
income to profit or loss for the period.
(b) total interest revenue and total interest expense (calculated
using the effective interest method) for financial assets that
are measured at amortised cost or that are measured at fair
value through other comprehensive income in accordance
with paragraph 4.1.2A of Ind AS 109 (showing these amounts
separately); or financial liabilities that are not measured at
fair value through profit or loss.
(c) fee income and expense (other than amounts included in
determining the effective interest rate) arising from:
(i) financial assets and financial liabilities that are not at
fair value through profit or loss; and
(ii) trust and other fiduciary activities that result in the
holding or investing of assets on behalf of individuals,
trusts, retirement benefit plans, and other institutions.
(d)-(e) [Refer Appendix 1]
20A An entity shall disclose an analysis of the gain or loss recognised in
the statement of profit and loss arising from the derecognition of
financial assets measured at amortised cost, showing separately
gains and losses arising from derecognition of those financial
assets. This disclosure shall include the reasons for derecognising
those financial assets.

Other disclosures
Accounting policies
21 3In accordance with paragraph 117 of Ind AS 1, Presentation of
Financial Statements, an entity discloses its significant accounting
policies, comprising the measurement basis (or bases) used in
preparing the financial statements and the other accounting policies

3 Substituted vide Notification No. G.S.R. 365(E) dated 30th March, 2016.
 Ind AS 107, Financial Instruments: Disclosures

used that are relevant to an understanding of the financial

statements.
Hedge accounting
21A An entity shall apply the disclosure requirements in paragraphs
21B–24F for those risk exposures that an entity hedges and for
which it elects to apply hedge accounting. Hedge accounting
disclosures shall provide information about:
(a) an entity’s risk management strategy and how it is applied to
manage risk;
(b) how the entity’s hedging activities may affect the amount,
timing and uncertainty of its future cash flows; and
(c) the effect that hedge accounting has had on the entity’s
balance sheet, statement of profit and loss and statement of
changes in equity.
21B An entity shall present the required disclosures in a single note or
separate section in its financial statements. However, an entity
need not duplicate information that is already presented elsewhere,
provided that the information is incorporated by cross-reference
from the financial statements to some other statement, such as a
management commentary or risk report, that is available to users of
the financial statements on the same terms as the financial
statements and at the same time. Without the information
incorporated by cross-reference, the financial statements are
incomplete.
21C When paragraphs 22A–24F require the entity to separate by risk
category the information disclosed, the entity shall determine each
risk category on the basis of the risk exposures an entity decides to
hedge and for which hedge accounting is applied. An entity shall
determine risk categories consistently for all hedge accounting
disclosures.
21D To meet the objectives in paragraph 21A, an entity shall (except as
otherwise specified below) determine how much detail to disclose,
how much emphasis to place on different aspects of the disclosure
requirements, the appropriate level of aggregation or disaggregation,
and whether users of financial statements need additional
explanations to evaluate the quantitative information disclosed.
However, an entity shall use the same level of aggregation or
 Ind AS 107, Financial Instruments: Disclosures

disaggregation it uses for disclosure requirements of related

information in this Ind AS and Ind AS 113, Fair Value Measurement.
The risk management strategy
22 [Refer Appendix 1]
22A An entity shall explain its risk management strategy for each risk
category of risk exposures that it decides to hedge and for which
hedge accounting is applied. This explanation should enable users
of financial statements to evaluate (for example):
(a) how each risk arises.
(b) how the entity manages each risk; this includes whether the
entity hedges an item in its entirety for all risks or hedges a
risk component (or components) of an item and why.
(c) the extent of risk exposures that the entity manages.
22B To meet the requirements in paragraph 22A, the information should
include (but is not limited to) a description of:
(a) the hedging instruments that are used (and how they are
used) to hedge risk exposures;
(b) how the entity determines the economic relationship between
the hedged item and the hedging instrument for the purpose
of assessing hedge effectiveness; and
(c) how the entity establishes the hedge ratio and what the
sources of hedge ineffectiveness are.
22C When an entity designates a specific risk component as a hedged
item (see paragraph 6.3.7 of Ind AS 109) it shall provide, in addition
to the disclosures required by paragraphs 22A and 22B, qualitative
or quantitative information about:
(a) how the entity determined the risk component that is
designated as the hedged item (including a description of the
nature of the relationship between the risk component and the
item as a whole); and
(b) how the risk component relates to the item in its entirety (for
example, the designated risk component historically covered
on average 80 per cent of the changes in fair value of the item
as a whole).
 Ind AS 107, Financial Instruments: Disclosures

The amount, timing and uncertainty of future cash flows

23 [Refer Appendix 1]
23A Unless exempted by paragraph 23C, an entity shall disclose by risk
category quantitative information to allow users of its financial
statements to evaluate the terms and conditions of hedging
instruments and how they affect the amount, timing and uncertainty
of future cash flows of the entity.
23B To meet the requirement in paragraph 23A, an entity shall provide a
breakdown that discloses:
(a) a profile of the timing of the nominal amount of the hedging
instrument; and
(b) if applicable, the average price or rate (for example strike or
forward prices etc) of the hedging instrument.
23C In situations in which an entity frequently resets (ie discontinues and
restarts) hedging relationships because both the hedging instrument
and the hedged item frequently change (ie the entity uses a dynamic
process in which both the exposure and the hedging instruments
used to manage that exposure do not remain the same for long—
such as in the example in paragraph B6.5.24(b) of Ind AS 109) the
entity:
(a) is exempt from providing the disclosures required by
paragraphs 23A and 23B.
(b) shall disclose:
(i) information about what the ultimate risk management
strategy is in relation to those hedging relationships;
(ii) a description of how it reflects its risk management
strategy by using hedge accounting and designating
those particular hedging relationships; and
(iii) an indication of how frequently the hedging
relationships are discontinued and restarted as part of
the entity’s process in relation to those hedging
relationships.
23D An entity shall disclose by risk category a description of the sources
of hedge ineffectiveness that are expected to affect the hedging
relationship during its term.
 Ind AS 107, Financial Instruments: Disclosures

23E If other sources of hedge ineffectiveness emerge in a hedging

relationship, an entity shall disclose those sources by risk category
and explain the resulting hedge ineffectiveness.
23F For cash flow hedges, an entity shall disclose a description of any
forecast transaction for which hedge accounting had been used in
the previous period, but which is no longer expected to occur.
The effects of hedge accounting on financial position and
performance
24 [Refer Appendix 1]
24A An entity shall disclose, in a tabular format, the following amounts
related to items designated as hedging instruments separately by
risk category for each type of hedge (fair value hedge, cash flow
hedge or hedge of a net investment in a foreign operation):
(a) the carrying amount of the hedging instruments (financial
assets separately from financial liabilities);
(b) the line item in the balance sheet that includes the hedging
instrument;
(c) the change in fair value of the hedging instrument used as the
basis for recognising hedge ineffectiveness for the period; and
(d) the nominal amounts (including quantities such as tonnes or
cubic metres) of the hedging instruments.
24B An entity shall disclose, in a tabular format, the following amounts
related to hedged items separately by risk category for the types of
hedges as follows:
(a) for fair value hedges:
(i) the carrying amount of the hedged item recognised in
the balance sheet (presenting assets separately from
liabilities);
(ii) the accumulated amount of fair value hedge
adjustments on the hedged item included in the
carrying amount of the hedged item recognised in the
balance sheet (presenting assets separately from
liabilities);
(iii) the line item in the balance sheet that includes the
hedged item;
 Ind AS 107, Financial Instruments: Disclosures

(iv) the change in value of the hedged item used as the

basis for recognising hedge ineffectiveness for the
period; and
(v) the accumulated amount of fair value hedge
adjustments remaining in the balance sheet for any
hedged items that have ceased to be adjusted for
hedging gains and losses in accordance with
paragraph 6.5.10 of Ind AS 109.
(b) for cash flow hedges and hedges of a net investment in a
foreign operation:
(i) the change in value of the hedged item used as the
basis for recognising hedge ineffectiveness for the
period (ie for cash flow hedges the change in value
used to determine the recognised hedge
ineffectiveness in accordance with paragraph 6.5.11(c)
of Ind AS 109);
(ii) the balances in the cash flow hedge reserve and the
foreign currency translation reserve for continuing
hedges that are accounted for in accordance with
paragraphs 6.5.11 and 6.5.13(a) of Ind AS 109; and
(iii) the balances remaining in the cash flow hedge reserve
and the foreign currency translation reserve from any
hedging relationships for which hedge accounting is no
longer applied.
24C An entity shall disclose, in a tabular format, the following amounts
separately by risk category for the types of hedges as follows:
(a) for fair value hedges:
(i) hedge ineffectiveness—ie the difference between the
hedging gains or losses of the hedging instrument and
the hedged item—recognised in profit or loss (or other
comprehensive income for hedges of an equity
instrument for which an entity has elected to present
changes in fair value in other comprehensive income in
accordance with paragraph 5.7.5 of Ind AS 109); and
(ii) the line item in the statement of profit and loss that
includes the recognised hedge ineffectiveness.
 Ind AS 107, Financial Instruments: Disclosures

(b) for cash flow hedges and hedges of a net investment in a

foreign operation:
(i) hedging gains or losses of the reporting period that
were recognised in other comprehensive income;
(ii) hedge ineffectiveness recognised in profit or loss;
(iii) the line item in the statement of profit and loss that
includes the recognised hedge ineffectiveness;
(iv) the amount reclassified from the cash flow hedge
reserve or the foreign currency translation reserve into
profit or loss as a reclassification adjustment (see Ind
AS 1) (differentiating between amounts for which hedge
accounting had previously been used, but for which the
hedged future cash flows are no longer expected to
occur, and amounts that have been transferred
because the hedged item has affected profit or loss);
(v) the line item in the statement of profit and loss that
includes the reclassification adjustment (see Ind AS 1);
and
(vi) for hedges of net positions, the hedging gains or losses
recognised in a separate line item in the statement of
profit and loss (see paragraph 6.6.4 of Ind AS 109).
24D When the volume of hedging relationships to which the exemption in
paragraph 23C applies is unrepresentative of normal volumes during
the period (ie the volume at the reporting date does not reflect the
volumes during the period) an entity shall disclose that fact and the
reason it believes the volumes are unrepresentative.
24E An entity shall provide a reconciliation of each component of equity
and an analysis of other comprehensive income in accordance with
Ind AS 1 that, taken together:
(a) differentiates, at a minimum, between the amounts that relate
to the disclosures in paragraph 24C(b)(i) and (b)(iv) as well as
the amounts accounted for in accordance with paragraph
6.5.11(d)(i) and (d)(iii) of Ind AS 109;
(b) differentiates between the amounts associated with the time
value of options that hedge transaction related hedged items
and the amounts associated with the time value of options
 Ind AS 107, Financial Instruments: Disclosures

that hedge time-period related hedged items when an entity

accounts for the time value of an option in accordance with
paragraph 6.5.15 of Ind AS 109; and
(c) differentiates between the amounts associated with forward
elements of forward contracts and the foreign currency basis
spreads of financial instruments that hedge transaction
related hedged items, and the amounts associated with
forward elements of forward contracts and the foreign
currency basis spreads of financial instruments that hedge
time-period related hedged items when an entity accounts for
those amounts in accordance with paragraph 6.5.16 of Ind AS
109.
24F An entity shall disclose the information required in paragraph 24E
separately by risk category. This disaggregation by risk may be
provided in the notes to the financial statements.
Option to designate a credit exposure as measured at fair value
through profit or loss
24G If an entity designated a financial instrument, or a proportion of it, as
measured at fair value through profit or loss because it uses a credit
derivative to manage the credit risk of that financial instrument it
shall disclose:
(a) for credit derivatives that have been used to manage the
credit risk of financial instruments designated as measured at
fair value through profit or loss in accordance with paragraph
6.7.1 of Ind AS 109, a reconciliation of each of the nominal
amount and the fair value at the beginning and at the end of
the period;
(b) the gain or loss recognised in profit or loss on designation of a
financial instrument, or a proportion of it, as measured at fair
value through profit or loss in accordance with paragraph
6.7.1 of Ind AS 109; and
(c) 4on discontinuation of measuring a financial instrument, or a
proportion of it, at fair value through profit or loss, that
financial instrument’s fair value that has become the new
carrying amount in accordance with paragraph 6.7.4 of Ind AS

4
Editorial correction notified vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
 Ind AS 107, Financial Instruments: Disclosures

109 and the related nominal or principal amount (except for

providing comparative information in accordance with Ind AS
1, an entity does not need to continue this disclosure in
subsequent periods).
5Uncertainty arising from interest rate benchmark reform
24H For hedging relationships to which an entity applies the exceptions
set out in paragraphs 6.8.4-6.8.12 of Ind AS 109, an entity shall
disclose-
(a) the significant interest rate benchmarks to which the entity’s
hedging relationships are exposed;
(b) the extent of the risk exposure the entity manages that is
directly affected by the interest rate benchmark reform;
(c) how the entity is managing the process to transition to
alternative benchmark rates;
(d) a description of significant assumptions or judgements the
entity made in applying these paragraphs (for example,
assumptions or judgements about when the uncertainty arising
from interest rate benchmark reform is no longer present with
respect to the timing and the amount of the interest rate
benchmark-based cash flows); and
(e) the nominal amount of the hedging instruments in those
hedging relationships.
6Additional disclosures related to interest rate benchmark reform

24I To enable users of financial statements to understand the effect of

interest rate benchmark reform on an entity’s financial instruments and
risk management strategy, an entity shall disclose information about:

(a) the nature and extent of risks to which the entity is exposed
arising from financial instruments subject to interest rate
benchmark reform, and how the entity manages these risks; and

5 Heading and paragraph 24H inserted vide Notification No. G.S.R. 463(E) dated 24th
July, 2020.
6
Heading and paragraphs 24I-24J inserted vide Notification No. G.S.R. 419(E) dated
18th June, 2021.
 Ind AS 107, Financial Instruments: Disclosures

(b) the entity’s progress in completing the transition to alternative

benchmark rates, and how the entity is managing the transition.

24J To meet the objectives in paragraph 24I, an entity shall disclose:

(a) how the entity is managing the transition to alternative benchmark

rates, its progress at the reporting date and the risks to which it is
exposed arising from financial instruments because of the
transition;

(b) disaggregated by significant interest rate benchmark subject to

interest rate benchmark reform, quantitative information about
financial instruments that have yet to transition to an alternative
benchmark rate as at the end of the reporting period, showing
separately:

(i) non-derivative financial assets;

(ii) non-derivative financial liabilities; and
(iii) derivatives; and

(c) if the risks identified in paragraph 24J(a) have resulted in

changes to an entity’s risk management strategy (see paragraph
22A), a description of these changes.

Fair value
25 Except as set out in paragraph 29, for each class of financial assets
and financial liabilities (see paragraph 6), an entity shall disclose the
fair value of that class of assets and liabilities in a way that permits it
to be compared with its carrying amount.
26 In disclosing fair values, an entity shall group financial assets and
financial liabilities into classes, but shall offset them only to the
extent that their carrying amounts are offset in the balance sheet.
27-27B [Refer Appendix 1]
28 In some cases, an entity does not recognise a gain or loss on initial
recognition of a financial asset or financial liability because the fair
value is neither evidenced by a quoted price in an active market for
 Ind AS 107, Financial Instruments: Disclosures

an identical asset or liability (ie a Level 1 input) nor based on a

valuation technique that uses only data from observable markets
(see paragraph B5.1.2A of Ind AS 109). In such cases, the entity
shall disclose by class of financial asset or financial liability:
(a) its accounting policy for recognising in profit or loss the
difference between the fair value at initial recognition and the
transaction price to reflect a change in factors (including time)
that market participants would take into account when pricing
the asset or liability (see paragraph B5.1.2A(b) of Ind AS
109).
(b) the aggregate difference yet to be recognised in profit or loss
at the beginning and end of the period and a reconciliation of
changes in the balance of this difference.
(c) why the entity concluded that the transaction price was not
the best evidence of fair value, including a description of the
evidence that supports the fair value.
29 Disclosures of fair value are not required:
(a) when the carrying amount is a reasonable approximation of
fair value, for example, for financial instruments such as
short-term trade receivables and payables;
(b) [Refer Appendix 1]
(c)7 for a contract containing a discretionary participation feature
(as described in Ind AS 104) if the fair value of that feature
cannot be measured reliably; or
(d) for lease liabilities.
30 In the case described in paragraph 29(c), an entity shall disclose
information to help users of the financial statements make their own
judgements about the extent of possible differences between the
carrying amount of those contracts and their fair value, including:
(a) the fact that fair value information has not been disclosed for
these instruments because their fair value cannot be
measured reliably;
(b) a description of the financial instruments, their carrying

7
Sub-paragraph (c) and (d) substituted vide Notification No. G.S.R. 273(E) dated 30th
March, 2019.
 Ind AS 107, Financial Instruments: Disclosures

amount, and an explanation of why fair value cannot be

measured reliably;
(c) information about the market for the instruments;
(d) information about whether and how the entity intends to
dispose of the financial instruments; and
(e) if financial instruments whose fair value previously could not
be reliably measured are derecognised, that fact, their
carrying amount at the time of derecognition, and the amount
of gain or loss recognised.

Nature and extent of risks arising from financial

instruments
31 An entity shall disclose information that enables users of its
financial statements to evaluate the nature and extent of risks
arising from financial instruments to which the entity is
exposed at the end of the reporting period.
32 The disclosures required by paragraphs 33–42 focus on the risks
that arise from financial instruments and how they have been
managed. These risks typically include, but are not limited to, credit
risk, liquidity risk and market risk.
32A Providing qualitative disclosures in the context of quantitative
disclosures enables users to link related disclosures and hence form
an overall picture of the nature and extent of risks arising from
financial instruments. The interaction between qualitative and
quantitative disclosures contributes to disclosure of information in a
way that better enables users to evaluate an entity’s exposure to
risks.

Qualitative disclosures
33 For each type of risk arising from financial instruments, an entity
shall disclose:
(a) the exposures to risk and how they arise;
(b) its objectives, policies and processes for managing the risk
and the methods used to measure the risk; and
(c) any changes in (a) or (b) from the previous period.
 Ind AS 107, Financial Instruments: Disclosures

Quantitative disclosures
34 For each type of risk arising from financial instruments, an entity
shall disclose:
(a) summary quantitative data about its exposure to that risk at
the end of the reporting period. This disclosure shall be based
on the information provided internally to key management
personnel of the entity (as defined in Ind AS 24, Related Party
Disclosures), for example the entity’s board of directors or
chief executive officer.
(b) the disclosures required by paragraphs 36–42, to the extent
not provided in accordance with (a).
(c) concentrations of risk if not apparent from the disclosures
made in accordance with (a) and (b).
35 If the quantitative data disclosed as at the end of the reporting period
are unrepresentative of an entity’s exposure to risk during the
period, an entity shall provide further information that is
representative.

Credit risk
Scope and objectives
35A An entity shall apply the disclosure requirements in paragraphs 35F–
35N to financial instruments to which the impairment requirements in
Ind AS 109 are applied. However:
(a) 8fortrade receivables, contract assets and lease receivables,
paragraph 35J(a) applies to those trade receivables, contract
assets or lease receivables on which lifetime expected credit
losses are recognised in accordance with paragraph 5.5.15 of
Ind AS 109, if those financial assets are modified while more
than 30 days past due; and
(b) paragraph 35K(b) does not apply to lease receivables.
35B The credit risk disclosures made in accordance with paragraphs
35F–35N shall enable users of financial statements to understand
the effect of credit risk on the amount, timing and uncertainty of

8
Editorial correction notified vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
 Ind AS 107, Financial Instruments: Disclosures

future cash flows. To achieve this objective, credit risk disclosures

shall provide:
(a) information about an entity’s credit risk management practices
and how they relate to the recognition and measurement of
expected credit losses, including the methods, assumptions
and information used to measure expected credit losses;
(b) quantitative and qualitative information that allows users of
financial statements to evaluate the amounts in the financial
statements arising from expected credit losses, including
changes in the amount of expected credit losses and the
reasons for those changes; and
(c) information about an entity’s credit risk exposure (ie the credit
risk inherent in an entity’s financial assets and commitments
to extend credit) including significant credit risk
concentrations.
35C An entity need not duplicate information that is already presented
elsewhere, provided that the information is incorporated by cross-
reference from the financial statements to other statements, such as
a management commentary or risk report that is available to users
of the financial statements on the same terms as the financial
statements and at the same time. Without the information
incorporated by cross-reference, the financial statements are
incomplete.
35D To meet the objectives in paragraph 35B, an entity shall (except as
otherwise specified) consider how much detail to disclose, how
much emphasis to place on different aspects of the disclosure
requirements, the appropriate level of aggregation or
disaggregation, and whether users of financial statements need
additional explanations to evaluate the quantitative information
disclosed.
35E If the disclosures provided in accordance with paragraphs 35F–35N
are insufficient to meet the objectives in paragraph 35B, an entity
shall disclose additional information that is necessary to meet those
objectives.
The credit risk management practices
35F An entity shall explain its credit risk management practices and how
they relate to the recognition and measurement of expected credit
 Ind AS 107, Financial Instruments: Disclosures

losses. To meet this objective an entity shall disclose information

that enables users of financial statements to understand and
evaluate:
(a) how an entity determined whether the credit risk of financial
instruments has increased significantly since initial
recognition, including, if and how:
(i) financial instruments are considered to have low credit
risk in accordance with paragraph 5.5.10 of Ind AS 109,
including the classes of financial instruments to which it
applies; and
(ii) the presumption in paragraph 5.5.11 of Ind AS 109, that
there have been significant increases in credit risk
since initial recognition when financial assets are more
than 30 days past due, has been rebutted;
(b) an entity’s definitions of default, including the reasons for
selecting those definitions;
(c) how the instruments were grouped if expected credit losses
were measured on a collective basis;
(d) how an entity determined that financial assets are credit-
impaired financial assets;
(e) an entity’s write-off policy, including the indicators that there is
no reasonable expectation of recovery and information about
the policy for financial assets that are written-off but are still
subject to enforcement activity; and
(f) how the requirements in paragraph 5.5.12 of Ind AS 109 for
the modification of contractual cash flows of financial assets
have been applied, including how an entity:
(i) determines whether the credit risk on a financial asset
that has been modified while the loss allowance was
measured at an amount equal to lifetime expected
credit losses, has improved to the extent that the loss
allowance reverts to being measured at an amount
equal to 12-month expected credit losses in accordance
with paragraph 5.5.5 of Ind AS 109; and
(ii) monitors the extent to which the loss allowance on
financial assets meeting the criteria in (i) is
 Ind AS 107, Financial Instruments: Disclosures

subsequently remeasured at an amount equal to

lifetime expected credit losses in accordance with
paragraph 5.5.3 of Ind AS 109.
35G An entity shall explain the inputs, assumptions and estimation
techniques used to apply the requirements in Section 5.5 of Ind AS
109. For this purpose an entity shall disclose:
(a) the basis of inputs and assumptions and the estimation
techniques used to:
(i) measure the 12-month and lifetime expected credit
losses;
(ii) 9determine whether the credit risk of financial
instruments has increased significantly since initial
recognition; and
(iii) determine whether a financial asset is a credit-impaired
financial asset.
(b) how forward-looking information has been incorporated into
the determination of expected credit losses, including the use
of macroeconomic information; and
(c) changes in the estimation techniques or significant
assumptions made during the reporting period and the
reasons for those changes.
Quantitative and qualitative information about amounts arising from
expected credit losses
35H To explain the changes in the loss allowance and the reasons for
those changes, an entity shall provide, by class of financial
instrument, a reconciliation from the opening balance to the closing
balance of the loss allowance, in a table, showing separately the
changes during the period for:
(a) the loss allowance measured at an amount equal to 12-month
expected credit losses;
(b) the loss allowance measured at an amount equal to lifetime
expected credit losses for:
(i) financial instruments for which credit risk has increased

9
Editorial correction notified vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
 Ind AS 107, Financial Instruments: Disclosures

significantly since initial recognition but that are not

credit-impaired financial assets;
(ii) financial assets that are credit-impaired at the reporting
date (but that are not purchased or originated credit-
impaired); and
(iii) trade receivables, contract assets or lease receivables
for which the loss allowances are measured in
accordance with paragraph 5.5.15 of Ind AS 109.
(c) financial assets that are purchased or originated credit-
impaired. In addition to the reconciliation, an entity shall
disclose the total amount of undiscounted expected credit
losses at initial recognition on financial assets initially
recognised during the reporting period.
35I To enable users of financial statements to understand the changes
in the loss allowance disclosed in accordance with paragraph 35H,
an entity shall provide an explanation of how significant changes in
the gross carrying amount of financial instruments during the period
contributed to changes in the loss allowance. The information shall
be provided separately for financial instruments that represent the
loss allowance as listed in paragraph 35H(a)–(c) and shall include
relevant qualitative and quantitative information. Examples of
changes in the gross carrying amount of financial instruments that
contributed to the changes in the loss allowance may include:
(a) changes because of financial instruments originated or
acquired during the reporting period;
(b) the modification of contractual cash flows on financial assets
that do not result in a derecognition of those financial assets
in accordance with Ind AS 109;
(c) changes because of financial instruments that were
derecognised (including those that were written-off) during the
reporting period; and
(d) changes arising from whether the loss allowance is measured
at an amount equal to 12-month or lifetime expected credit
losses.
35J To enable users of financial statements to understand the nature
and effect of modifications of contractual cash flows on financial
 Ind AS 107, Financial Instruments: Disclosures

assets that have not resulted in derecognition and the effect of such
modifications on the measurement of expected credit losses, an
entity shall disclose:
(a) the amortised cost before the modification and the net
modification gain or loss recognised for financial assets for
which the contractual cash flows have been modified during
the reporting period while they had a loss allowance
measured at an amount equal to lifetime expected credit
losses; and
(b) the gross carrying amount at the end of the reporting period of
financial assets that have been modified since initial
recognition at a time when the loss allowance was measured
at an amount equal to lifetime expected credit losses and for
which the loss allowance has changed during the reporting
period to an amount equal to 12-month expected credit
losses.
35K To enable users of financial statements to understand the effect of
collateral and other credit enhancements on the amounts arising from
expected credit losses, an entity shall disclose by class of financial
instrument:
(a) the amount that best represents its maximum exposure to credit
risk at the end of the reporting period without taking account of
any collateral held or other credit enhancements (eg netting
agreements that do not qualify for offset in accordance with Ind
AS 32).
(b) a narrative description of collateral held as security and other
credit enhancements, including:
(i) a description of the nature and quality of the collateral
held;
(ii) an explanation of any significant changes in the quality of
that collateral or credit enhancements as a result of
deterioration or changes in the collateral policies of the
entity during the reporting period; and
(iii) information about financial instruments for which an entity
has not recognised a loss allowance because of the
collateral.
 Ind AS 107, Financial Instruments: Disclosures

(c) quantitative information about the collateral held as security and

other credit enhancements (for example, quantification of the
extent to which collateral and other credit enhancements
mitigate credit risk) for financial assets that are credit-impaired
at the reporting date.
35L An entity shall disclose the contractual amount outstanding on
financial assets that were written off during the reporting period and
are still subject to enforcement activity.
Credit risk exposure
35M To enable users of financial statements to assess an entity’s credit
risk exposure and understand its significant credit risk
concentrations, an entity shall disclose, by credit risk rating grades,
the gross carrying amount of financial assets and the exposure to
credit risk on loan commitments and financial guarantee contracts.
This information shall be provided separately for financial
instruments:
(a) for which the loss allowance is measured at an amount equal
to 12-month expected credit losses;
(b) for which the loss allowance is measured at an amount equal
to lifetime expected credit losses and that are:
(i) financial instruments for which credit risk has increased
significantly since initial recognition but that are not
credit-impaired financial assets;
(ii) financial assets that are credit-impaired at the reporting
date (but that are not purchased or originated credit-
impaired); and
(iii) trade receivables, contract assets or lease receivables
for which the loss allowances are measured in
accordance with paragraph 5.5.15 of Ind AS 109.
(c) that are purchased or originated credit-impaired financial
assets.
35N For trade receivables, contract assets and lease receivables to
which an entity applies paragraph 5.5.15 of Ind AS 109, the
information provided in accordance with paragraph 35M may be
based on a provision matrix (see paragraph B5.5.35 of Ind AS 109).
 Ind AS 107, Financial Instruments: Disclosures

36 For all financial instruments within the scope of this Ind AS, but to
which the impairment requirements in Ind AS 109 are not applied, an
entity shall disclose by class of financial instrument:
(a) the amount that best represents its maximum exposure to
credit risk at the end of the reporting period without taking
account of any collateral held or other credit enhancements
(eg netting agreements that do not qualify for offset in
accordance with Ind AS 32); this disclosure is not required for
financial instruments whose carrying amount best represents
the maximum exposure to credit risk.
(b) a description of collateral held as security and other credit
enhancements, and their financial effect (eg quantification of
the extent to which collateral and other credit enhancements
mitigate credit risk) in respect of the amount that best
represents the maximum exposure to credit risk (whether
disclosed in accordance with (a) or represented by the
carrying amount of a financial instrument).
(c) [Refer Appendix 1]
(d) [Refer Appendix 1]
Financial assets that are either past due or impaired
37 [Refer Appendix 1].
Collateral and other credit enhancements obtained
38 When an entity obtains financial or non-financial assets during the
period by taking possession of collateral it holds as security or
calling on other credit enhancements (eg guarantees), and such
assets meet the recognition criteria in other Ind AS, an entity shall
disclose for such assets held at the reporting date:
(a) the nature and carrying amount of the assets; and
(b) when the assets are not readily convertible into cash, its
policies for disposing of such assets or for using them in its
operations.
Liquidity risk
39 An entity shall disclose:
(a) a maturity analysis for non-derivative financial liabilities
(including issued financial guarantee contracts) that shows
 Ind AS 107, Financial Instruments: Disclosures

the remaining contractual maturities.

(b) a maturity analysis for derivative financial liabilities. The
maturity analysis shall include the remaining contractual
maturities for those derivative financial liabilities for which
contractual maturities are essential for an understanding of
the timing of the cash flows (see paragraph B11B).
(c) a description of how it manages the liquidity risk inherent in
(a) and (b).
Market risk
Sensitivity analysis
40 Unless an entity complies with paragraph 41, it shall disclose:
(a) a sensitivity analysis for each type of market risk to which the
entity is exposed at the end of the reporting period, showing
how profit or loss and equity would have been affected by
changes in the relevant risk variable that were reasonably
possible at that date;
(b) the methods and assumptions used in preparing the
sensitivity analysis; and
(c) changes from the previous period in the methods and
assumptions used, and the reasons for such changes.
41 If an entity prepares a sensitivity analysis, such as value-at-risk, that
reflects interdependencies between risk variables (eg interest rates
and exchange rates) and uses it to manage financial risks, it may
use that sensitivity analysis in place of the analysis specified in
paragraph 40. The entity shall also disclose:
(a) an explanation of the method used in preparing such a
sensitivity analysis, and of the main parameters and
assumptions underlying the data provided; and
(b) an explanation of the objective of the method used and of
limitations that may result in the information not fully reflecting
the fair value of the assets and liabilities involved.
Other market risk disclosures
42 When the sensitivity analyses disclosed in accordance with
paragraph 40 or 41 are unrepresentative of a risk inherent in a
financial instrument (for example because the year-end exposure
 Ind AS 107, Financial Instruments: Disclosures

does not reflect the exposure during the year), the entity shall
disclose that fact and the reason it believes the sensitivity analyses
are unrepresentative.

Transfers of financial assets

42A The disclosure requirements in paragraphs 42B–42H relating to
transfers of financial assets supplement the other disclosure
requirements of this Ind AS. An entity shall present the disclosures
required by paragraphs 42B–42H in a single note in its financial
statements. An entity shall provide the required disclosures for all
transferred financial assets that are not derecognised and for any
continuing involvement in a transferred asset, existing at the
reporting date, irrespective of when the related transfer transaction
occurred. For the purposes of applying the disclosure requirements
in those paragraphs, an entity transfers all or a part of a financial
asset (the transferred financial asset) if, and only if, it either:
(a) transfers the contractual rights to receive the cash flows of
that financial asset; or
(b) retains the contractual rights to receive the cash flows of that
financial asset, but assumes a contractual obligation to pay
the cash flows to one or more recipients in an arrangement.
42B An entity shall disclose information that enables users of its financial
statements:
(a) to understand the relationship between transferred financial
assets that are not derecognised in their entirety and the
associated liabilities; and
(b) to evaluate the nature of, and risks associated with, the
entity’s continuing involvement in derecognised financial
assets.
42C For the purposes of applying the disclosure requirements in
paragraphs 42E–42H, an entity has continuing involvement in a
transferred financial asset if, as part of the transfer, the entity retains
any of the contractual rights or obligations inherent in the transferred
financial asset or obtains any new contractual rights or obligations
relating to the transferred financial asset. For the purposes of
applying the disclosure requirements in paragraphs 42E–42H, the
 Ind AS 107, Financial Instruments: Disclosures

following do not constitute continuing involvement:

(a) normal representations and warranties relating to fraudulent
transfer and concepts of reasonableness, good faith and fair
dealings that could invalidate a transfer as a result of legal
action;
(b) forward, option and other contracts to reacquire the
transferred financial asset for which the contract price (or
exercise price) is the fair value of the transferred financial
asset; or
(c) an arrangement whereby an entity retains the contractual
rights to receive the cash flows of a financial asset but
assumes a contractual obligation to pay the cash flows to one
or more entities and the conditions in paragraph 3.2.5(a)–(c)
of Ind AS 109 are met.
Transferred financial assets that are not
derecognised in their entirety
42D An entity may have transferred financial assets in such a way that
part or all of the transferred financial assets do not qualify for
derecognition. To meet the objectives set out in paragraph 42B(a),
the entity shall disclose at each reporting date for each class of
transferred financial assets that are not derecognised in their
entirety:
(a) the nature of the transferred assets.
(b) the nature of the risks and rewards of ownership to which the
entity is exposed.
(c) a description of the nature of the relationship between the
transferred assets and the associated liabilities, including
restrictions arising from the transfer on the reporting entity’s
use of the transferred assets.
(d) when the counterparty (counterparties) to the associated
liabilities has (have) recourse only to the transferred assets, a
schedule that sets out the fair value of the transferred assets,
the fair value of the associated liabilities and the net position
(the difference between the fair value of the transferred
assets and the associated liabilities).
 Ind AS 107, Financial Instruments: Disclosures

(e) when the entity continues to recognise all of the transferred

assets, the carrying amounts of the transferred assets and the
associated liabilities.
(f) when the entity continues to recognise the assets to the
extent of its continuing involvement (see paragraphs
3.2.6(c)(ii) and 3.2.16 of Ind AS 109), the total carrying
amount of the original assets before the transfer, the carrying
amount of the assets that the entity continues to recognise,
and the carrying amount of the associated liabilities.
Transferred financial assets that are derecognised
in their entirety
42E To meet the objectives set out in paragraph 42B(b), when an entity
derecognizes transferred financial assets in their entirety (see
paragraph 3.2.6(a) and (c)(i) of Ind AS 109) but has continuing
involvement in them, the entity shall disclose, as a minimum, for
each type of continuing involvement at each reporting date:
(a) the carrying amount of the assets and liabilities that are
recognised in the entity’s balance sheet and represent the
entity’s continuing involvement in the derecognised financial
assets, and the line items in which the carrying amount of
those assets and liabilities are recognised.
(b) the fair value of the assets and liabilities that represent the
entity’s continuing involvement in the derecognised financial
assets.
(c) the amount that best represents the entity’s maximum
exposure to loss from its continuing involvement in the
derecognised financial assets, and information showing how
the maximum exposure to loss is determined.
(d) the undiscounted cash outflows that would or may be required
to repurchase derecognised financial assets (eg the strike
price in an option agreement) or other amounts payable to the
transferee in respect of the transferred assets. If the cash
outflow is variable then the amount disclosed should be based
on the conditions that exist at each reporting date.
(e) a maturity analysis of the undiscounted cash outflows that
would or may be required to repurchase the derecognised
 Ind AS 107, Financial Instruments: Disclosures

financial assets or other amounts payable to the transferee in

respect of the transferred assets, showing the remaining
contractual maturities of the entity’s continuing involvement.
(f) qualitative information that explains and supports the
quantitative disclosures required in (a)–(e).
42F An entity may aggregate the information required by paragraph 42E
in respect of a particular asset if the entity has more than one type
of continuing involvement in that derecognised financial asset, and
report it under one type of continuing involvement.
42G In addition, an entity shall disclose for each type of continuing
involvement:
(a) the gain or loss recognised at the date of transfer of the
assets.
(b) income and expenses recognised, both in the reporting period
and cumulatively, from the entity’s continuing involvement in
the derecognised financial assets (eg fair value changes in
derivative instruments).
(c) if the total amount of proceeds from transfer activity (that
qualifies for derecognition) in a reporting period is not evenly
distributed throughout the reporting period (eg if a substantial
proportion of the total amount of transfer activity takes place
in the closing days of a reporting period):
(i) when the greatest transfer activity took place within that
reporting period (eg the last five days before the end of
the reporting period),
(ii) the amount (eg related gains or losses) recognised
from transfer activity in that part of the reporting period,
and
(iii) the total amount of proceeds from transfer activity in
that part of the reporting period.
An entity shall provide this information for each period for which a
statement of profit and loss is presented.
Supplementary information
42H An entity shall disclose any additional information that it considers
necessary to meet the disclosure objectives in paragraph 42B.
 Ind AS 107, Financial Instruments: Disclosures

42 I-42S10 Omitted*

Effective date and transition

43-44BB Omitted*
44CC Ind AS 116 amended paragraphs 29 and B11D. An entity shall apply
those amendments when it applies Ind AS 116.
44DD 11[Refer Appendix 1]
44EE12 Interest Rate Benchmark Reform (amendments to Ind AS 109 and
Ind AS 107) added paragraphs 24H and 44DF. An entity shall apply
these amendments when it applies the amendments to Ind AS 109.
44FF13 In the reporting period in which an entity first applies Interest Rate
Benchmark Reform, an entity is not required to present the
quantitative information required by paragraph 28(f) of Ind AS 8,
Accounting Policies, Changes in Accounting Estimates and Errors.
44GG14 Interest Rate Benchmark Reform—Phase 2, which amended Ind AS
109, Ind AS 107, Ind AS 104 and Ind AS 116, added paragraphs 24I–
24J and 44HH. An entity shall apply these amendments when it applies
the amendments to Ind AS 109, Ind AS 104 or Ind AS 116.
44HH15 In the reporting period in which an entity first applies Interest Rate
Benchmark Reform—Phase 2, an entity is not required to disclose the
information that would otherwise be required by paragraph 28(f) of Ind
AS 8.

10 Paragraphs 42I-44CC and heading inserted vide Notification No. G.S.R. 273(E) dated
30th March, 2019.
* Refer Appendix 1

11 Inserted vide Notification No. G.S.R. 463(E) dated 24th July, 2020.
12 Inserted vide Notification No. G.S.R. 463(E) dated 24th July, 2020 and renumbered
vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
13 Inserted vide Notification No. G.S.R. 463(E) dated 24 th July, 2020 and renumbered

vide Notification No. G.S.R. 419(E) dated 18th June, 2021.

14 Inserted vide Notification No. G.S.R. 419(E) dated 18th June, 2021.

15 Inserted vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
 Ind AS 107, Financial Instruments: Disclosures

Appendix A
Defined terms
This appendix is an integral part of the Ind AS.

credit risk The risk that one party to a financial instrument will cause
a financial loss for the other party by failing to discharge
an obligation.
credit risk Rating of credit risk based on the risk of a default
rating grades occurring rating grades on the financial instrument.
currency risk The risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in
foreign exchange rates.
interest rate The risk that the fair value or future cash flows of a
risk financial instrument will fluctuate because of changes in
market interest rates.
liquidity risk The risk that an entity will encounter difficulty in meeting
obligations associated with financial liabilities that are
settled by delivering cash or another financial asset.
loans Loans payable are financial liabilities, other than short-
payable term trade payables on normal credit terms.
market risk The risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk:
currency risk, interest rate risk and other price risk.
other price The risk that the fair value or future cash flows of a
risk financial instrument will fluctuate because of changes in
market prices (other than those arising from interest rate
risk or currency risk), whether those changes are
caused by factors specific to the individual financial
instrument or its issuer or by factors affecting all similar
financial instruments traded in the market.
The following terms are defined in paragraph 11 of Ind AS 32, Appendix A of
Ind AS 109 or Appendix A of Ind AS 113 and are used in this Ind AS with the
meaning specified in Ind AS 32, Ind AS 109 and Ind AS 113.
 Ind AS 107, Financial Instruments: Disclosures

 amortised cost of a financial asset or financial liability

 contract asset
 credit-impaired financial assets
 derecognition
 derivative
 dividends
 effective interest method
 16effective
interest rate
 equity instrument
 expected credit losses
 fair value
 financial asset
 financial guarantee contract
 financial instrument
 financial liability
 financial liability at fair value through profit or loss
 forecast transaction
 17gross carrying amount of a financial asset
 hedging instrument
 held for trading
 impairment gains or losses
 loss allowance
 18past due
 purchased or originated credit-impaired financial assets
 reclassification date
 regular way purchase or sale

16 Editorial correction notified vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
17 Editorial correction notified vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
18 Editorial correction notified vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
 Ind AS 107, Financial Instruments: Disclosures

Appendix B
Application guidance
This appendix is an integral part of the Ind AS.

Classes of financial instruments and level of

disclosure (paragraph 6)
B1 Paragraph 6 requires an entity to group 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. The classes described in paragraph 6 are
determined by the entity and are, thus, distinct from the categories
of financial instruments specified in Ind AS 109 (which determine
how financial instruments are measured and where changes in fair
value are recognised).
B2 In determining classes of financial instrument, an entity shall, at a
minimum:
(a) distinguish instruments measured at amortised cost from
those measured at fair value.
(b) treat as a separate class or classes those financial
instruments outside the scope of this Ind AS.
B3 An entity decides, in the light of its circumstances, how much detail it
provides to satisfy the requirements of this Ind AS, how much
emphasis it places on different aspects of the requirements and how
it aggregates information to display the overall picture without
combining information with different characteristics. It is necessary
to strike a balance between overburdening financial statements with
excessive detail that may not assist users of financial statements
and obscuring important information as a result of too much
aggregation. For example, an entity shall not obscure important
information by including it among a large amount of insignificant
detail. Similarly, an entity shall not disclose information that is so
aggregated that it obscures important differences between individual
transactions or associated risks.
B4 [Refer Appendix 1]
 Ind AS 107, Financial Instruments: Disclosures

Other disclosure – accounting policies (paragraph

21)
B5 19Paragraph 21 requires disclosure of the measurement basis (or
bases) used in preparing the financial statements and the other
accounting policies used that are relevant to an understanding of the
financial statements. For financial instruments, such disclosure may
include:
(a) for financial liabilities designated as at fair value through
profit or loss:
(i) the nature of the financial liabilities the entity has
designated as at fair value through profit or loss;
(ii) the criteria for so designating such financial liabilities
on initial recognition; and
(iii) how the entity has satisfied the conditions in paragraph
4.2.2 of Ind AS 109 for such designation.
(aa) for financial assets designated as measured at fair value
through profit or loss:
(i) the nature of the financial assets the entity has
designated as measured at fair value through profit or
loss; and
(ii) how the entity has satisfied the criteria in paragraph
4.1.5 of Ind AS 109 for such designation.
(b) [Refer Appendix 1]
(c) whether regular way purchases and sales of financial assets
are accounted for at trade date or at settlement date (see
paragraph 3.1.2 of Ind AS 109).
(d) [Refer Appendix 1]
(e) how net gains or net losses on each category of financial
instrument are determined (see paragraph 20(a)), for
example, whether the net gains or net losses on items at
fair value through profit or loss include interest or dividend
income.

19 Substituted vide Notification No. G.S.R. 365(E) dated 30th March, 2016.
 Ind AS 107, Financial Instruments: Disclosures

(f)-(g) [Refer Appendix 1]

20Paragraph 122 of Ind AS 1 also requires entities to disclose, along
with its significant accounting policies or other notes, the
judgements, apart from those involving estimations, that
management has made in the process of applying the entity’s
accounting policies and that have the most significant effect on the
amounts recognised in the financial statements.

Nature and extent of risks arising from financial

instruments (paragraphs 31–42)
B6 The disclosures required by paragraphs 31–42 shall be either given
in the financial statements or incorporated by cross-reference from
the financial statements to some other statement, such as a
management commentary or risk report, that is available to users of
the financial statements on the same terms as the financial
statements and at the same time. Without the information
incorporated by cross-reference, the financial statements are
incomplete.

Quantitative disclosures (paragraph 34)

B7 Paragraph 34(a) requires disclosures of summary quantitative data
about an entity’s exposure to risks based on the information
provided internally to key management personnel of the entity.
When an entity uses several methods to manage a risk exposure,
the entity shall disclose information using the method or methods
that provide the most relevant and reliable information. Ind AS 8,
Accounting Policies, Changes in Accounting Estimates and Errors,
discusses relevance and reliability.
B8 Paragraph 34(c) requires disclosures about concentrations of risk.
Concentrations of risk arise from financial instruments that have
similar characteristics and are affected similarly by changes in
economic or other conditions. The identification of concentrations of
risk requires judgement taking into account the circumstances of the
entity. Disclosure of concentrations of risk shall include:
(a) a description of how management determines concentrations;

20 Substituted vide Notification No. G.S.R. 365(E) dated 30th March, 2016.
 Ind AS 107, Financial Instruments: Disclosures

(b) a description of the shared characteristic that identifies each

concentration (eg counterparty, geographical area, currency
or market); and
(c) the amount of the risk exposure associated with all financial
instruments sharing that characteristic.

Credit risk management practices (paragraphs 35F-35G)

B8A Paragraph 35F(b) requires the disclosure of information about how
an entity has defined default for different financial instruments and
the reasons for selecting those definitions. In accordance with
paragraph 5.5.9 of Ind AS 109, the determination of whether lifetime
expected credit losses should be recognised is based on the
increase in the risk of a default occurring since initial recognition.
Information about an entity’s definitions of default that will assist
users of financial statements in understanding how an entity has
applied the expected credit loss requirements in Ind AS 109 may
include:
(a) the qualitative and quantitative factors considered in defining
default;
(b) whether different definitions have been applied to different
types of financial instruments; and
(c) assumptions about the cure rate (ie the number of financial
assets that return to a performing status) after a default
occurred on the financial asset.
B8B 21To assist users of financial statements in evaluating an entity’s
restructuring and modification policies, paragraph 35F(f)(ii) requires
the disclosure of information about how an entity monitors the extent
to which the loss allowance on financial assets previously disclosed
in accordance with paragraph 35F(f)(i) are subsequently measured
at an amount equal to lifetime expected credit losses in accordance
with paragraph 5.5.3 of Ind AS 109. Quantitative information that will
assist users in understanding the subsequent increase in credit risk
of modified financial assets may include information about modified
financial assets meeting the criteria in paragraph 35F(f)(i) for which
the loss allowance has reverted to being measured at an amount
equal to lifetime expected credit losses (ie a deterioration rate).

21
Editorial correction notified vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
 Ind AS 107, Financial Instruments: Disclosures

B8C Paragraph 35G(a) requires the disclosure of information about the

basis of inputs and assumptions and the estimation techniques used
to apply the impairment requirements in Ind AS 109. An entity’s
assumptions and inputs used to measure expected credit losses or
determine the extent of increases in credit risk since initial
recognition may include information obtained from internal historical
information or rating reports and assumptions about the expected
life of financial instruments and the timing of the sale of collateral.

Changes in the loss allowance (paragraph 35H)

B8D In accordance with paragraph 35H, an entity is required to explain
the reasons for the changes in the loss allowance during the period.
In addition to the reconciliation from the opening balance to the
closing balance of the loss allowance, it may be necessary to
provide a narrative explanation of the changes. This narrative
explanation may include an analysis of the reasons for changes in
the loss allowance during the period, including:
(a) the portfolio composition;
(b) the volume of financial instruments purchased or originated;
and
(c) the severity of the expected credit losses.
B8E For loan commitments and financial guarantee contracts the loss
allowance is recognised as a provision. An entity should disclose
information about the changes in the loss allowance for financial
assets separately from those for loan commitments and financial
guarantee contracts. However, if a financial instrument includes both
a loan (ie financial asset) and an undrawn commitment (ie loan
commitment) component and the entity cannot separately identify
the expected credit losses on the loan commitment component from
those on the financial asset component, the expected credit losses
on the loan commitment should be recognised together with the loss
allowance for the financial asset. To the extent that the combined
expected credit losses exceed the gross carrying amount of the
financial asset, the expected credit losses should be recognised as
a provision.

Collateral (paragraph 35K)

B8F Paragraph 35K requires the disclosure of information that will enable
 Ind AS 107, Financial Instruments: Disclosures

users of financial statements to understand the effect of collateral

and other credit enhancements on the amount of expected credit
losses. An entity is neither required to disclose information about the
fair value of collateral and other credit enhancements nor is it
required to quantify the exact value of the collateral that was
included in the calculation of expected credit losses (ie the loss
given default).
B8G A narrative description of collateral and its effect on amounts of
expected credit losses might include information about:
(a) the main types of collateral held as security and other credit
enhancements (examples of the latter being guarantees,
credit derivatives and netting agreements that do not qualify
for offset in accordance with Ind AS 32);
(b) the volume of collateral held and other credit enhancements
and its significance in terms of the loss allowance;
(c) the policies and processes for valuing and managing
collateral and other credit enhancements;
(d) the main types of counterparties to collateral and other credit
enhancements and their creditworthiness; and
(e) information about risk concentrations within the collateral and
other credit enhancements.

Credit risk exposure (paragraphs 35M–35N)

B8H Paragraph 35M requires the disclosure of information about an
entity’s credit risk exposure and significant concentrations of credit
risk at the reporting date. A concentration of credit risk exists when a
number of counterparties are located in a geographical region or are
engaged in similar activities and have similar economic
characteristics that would cause their ability to meet contractual
obligations to be similarly affected by changes in economic or other
conditions. An entity should provide information that enables users
of financial statements to understand whether there are groups or
portfolios of financial instruments with particular features that could
affect a large portion of that group of financial instruments such as
concentration to particular risks. This could include, for example,
loan-to-value groupings, geographical, industry or issuer-type
concentrations.
 Ind AS 107, Financial Instruments: Disclosures

B8I 22The number of credit risk rating grades used to disclose the
information in accordance with paragraph 35M shall be consistent
with the number that the entity reports to key management
personnel for credit risk management purposes. If past due
information is the only borrower-specific information available and
an entity uses past due information to assess whether credit risk has
increased significantly since initial recognition in accordance with
paragraph 5.5.11 of Ind AS 109, an entity shall provide an analysis
by past due status for those financial assets.
B8J When an entity has measured expected credit losses on a collective
basis, the entity may not be able to allocate the gross carrying
amount of individual financial assets or the exposure to credit risk on
loan commitments and financial guarantee contracts to the credit
risk rating grades for which lifetime expected credit losses are
recognised. In that case, an entity should apply the requirement in
paragraph 35M to those financial instruments that can be directly
allocated to a credit risk rating grade and disclose separately the
gross carrying amount of financial instruments for which lifetime
expected credit losses have been measured on a collective basis.

Maximum credit risk exposure (paragraph 36(a))

B9 Paragraphs 35K(a) and 36(a) require disclosure of the amount that
best represents the entity’s maximum exposure to credit risk. For a
financial asset, this is typically the gross carrying amount, net of:
(a) any amounts offset in accordance with Ind AS 32; and
(b) any loss allowance recognised in accordance with Ind AS
109.
B10 Activities that give rise to credit risk and the associated maximum
exposure to credit risk include, but are not limited to:
(a) granting loans to customers and placing deposits with other
entities. In these cases, the maximum exposure to credit risk
is the carrying amount of the related financial assets.
(b) entering into derivative contracts, eg foreign exchange
contracts, interest rate swaps and credit derivatives. When
the resulting asset is measured at fair value, the maximum

22
Editorial correction notified vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
 Ind AS 107, Financial Instruments: Disclosures

exposure to credit risk at the end of the reporting period will

equal the carrying amount.
(c) granting financial guarantees. In this case, the maximum
exposure to credit risk is the maximum amount the entity
could have to pay if the guarantee is called on, which may be
significantly greater than the amount recognised as a liability.
(d) making a loan commitment that is irrevocable over the life of
the facility or is revocable only in response to a material
adverse change. If the issuer cannot settle the loan
commitment net in cash or another financial instrument, the
maximum credit exposure is the full amount of the
commitment. This is because it is uncertain whether the
amount of any undrawn portion may be drawn upon in the
future. This may be significantly greater than the amount
recognised as a liability.

Quantitative liquidity risk disclosures (paragraphs

34(a) and 39(a) and (b))
B10A In accordance with paragraph 34(a) an entity discloses summary
quantitative data about its exposure to liquidity risk on the basis of
the information provided internally to key management personnel. An
entity shall explain how those data are determined. If the outflows of
cash (or another financial asset) included in those data could either:
(a) occur significantly earlier than indicated in the data, or
(b) be for significantly different amounts from those indicated in
the data (eg for a derivative that is included in the data on a
net settlement basis but for which the counterparty has the
option to require gross settlement),
the entity shall state that fact and provide quantitative information
that enables users of its financial statements to evaluate the extent
of this risk unless that information is included in the contractual
maturity analyses required by paragraph 39(a) or (b).
B11 In preparing the maturity analyses required by paragraph 39(a) and
(b), an entity uses its judgement to determine an appropriate number
of time bands. For example, an entity might determine that the
following time bands are appropriate:
 Ind AS 107, Financial Instruments: Disclosures

(a) not later than one month;

(b) later than one month and not later than three months;
(c) later than three months and not later than one year; and
(d) later than one year and not later than five years.
B11A In complying with paragraph 39(a) and (b), an entity shall not
separate an embedded derivative from a hybrid (combined) financial
instrument. For such an instrument, an entity shall apply paragraph
39(a).
B11B Paragraph 39(b) requires an entity to disclose a quantitative maturity
analysis for derivative financial liabilities that shows remaining
contractual maturities if the contractual maturities are essential for
an understanding of the timing of the cash flows. For example, this
would be the case for:
(a) an interest rate swap with a remaining maturity of five years in
a cash flow hedge of a variable rate financial asset or liability.
(b) all loan commitments.
B11C Paragraph 39(a) and (b) requires an entity to disclose maturity
analyses for financial liabilities that show the remaining contractual
maturities for some financial liabilities. In this disclosure:
(a) when a counterparty has a choice of when an amount is paid,
the liability is allocated to the earliest period in which the
entity can be required to pay. For example, financial liabilities
that an entity can be required to repay on demand (eg
demand deposits) are included in the earliest time band.
(b) when an entity is committed to make amounts available in
instalments, each instalment is allocated to the earliest period
in which the entity can be required to pay. For example, an
undrawn loan commitment is included in the time band
containing the earliest date it can be drawn down.
(c) for issued financial guarantee contracts the maximum amount
of the guarantee is allocated to the earliest period in which the
guarantee could be called.
B11D The contractual amounts disclosed in the maturity analyses as
required by paragraph 39(a) and (b) are the contractual
undiscounted cash flows, for example:
 Ind AS 107, Financial Instruments: Disclosures

(a) 23gross lease liabilities (before deducting finance charges);

(b) prices specified in forward agreements to purchase financial
assets for cash;
(c) net amounts for pay-floating/receive-fixed interest rate swaps
for which net cash flows are exchanged;
(d) contractual amounts to be exchanged in a derivative financial
instrument (eg a currency swap) for which gross cash flows
are exchanged; and
(e) gross loan commitments.
Such undiscounted cash flows differ from the amount included in the
balance sheet because the amount in balance sheet is based on
discounted cash flows. When the amount payable is not fixed, the
amount disclosed is determined by reference to the conditions
existing at the end of the reporting period. For example, when the
amount payable varies with changes in an index, the amount
disclosed may be based on the level of the index at the end of the
period.
B11E Paragraph 39(c) requires an entity to describe how it manages the
liquidity risk inherent in the items disclosed in the quantitative
disclosures required in paragraph 39(a) and (b). An entity shall
disclose a maturity analysis of financial assets it holds for managing
liquidity risk (eg financial assets that are readily saleable or
expected to generate cash inflows to meet cash outflows on financial
liabilities), if that information is necessary to enable users of its
financial statements to evaluate the nature and extent of liquidity
risk.
B11F Other factors that an entity might consider in providing the
disclosure required in paragraph 39(c) include, but are not limited to,
whether the entity:
(a) has committed borrowing facilities (eg commercial paper
facilities) or other lines of credit (eg stand-by credit facilities)
that it can access to meet liquidity needs;
(b) holds deposits at central banks to meet liquidity needs;
(c) has very diverse funding sources;

23
Substituted vide Notification No. G.S.R. 273(E) dated 30th March, 2019.
 Ind AS 107, Financial Instruments: Disclosures

(d) has significant concentrations of liquidity risk in either its

assets or its funding sources;
(e) has internal control processes and contingency plans for
managing liquidity risk;
(f) has instruments that include accelerated repayment terms (eg
on the downgrade of the entity’s credit rating);
(g) has instruments that could require the posting of collateral (eg
margin calls for derivatives);
(h) has instruments that allow the entity to choose whether it
settles its financial liabilities by delivering cash (or another
financial asset) or by delivering its own shares; or
(i) has instruments that are subject to master netting
agreements.
B12-B16 [Refer Appendix 1]

Market risk – sensitivity analysis (paragraphs 40

and 41)
B17 Paragraph 40(a) requires a sensitivity analysis for each type of
market risk to which the entity is exposed. In accordance with
paragraph B3, an entity decides how it aggregates information to
display the overall picture without combining information with
different characteristics about exposures to risks from significantly
different economic environments. For example:
(a) an entity that trades financial instruments might disclose this
information separately for financial instruments held for
trading and those not held for trading.
(b) an entity would not aggregate its exposure to market risks
from areas of hyperinflation with its exposure to the same
market risks from areas of very low inflation.
If an entity has exposure to only one type of market risk in only one
economic environment, it would not show disaggregated information.
B18 Paragraph 40(a) requires the sensitivity analysis to show the effect
on profit or loss and equity of reasonably possible changes in the
relevant risk variable (eg prevailing market interest rates, currency
rates, equity prices or commodity prices). For this purpose:
 Ind AS 107, Financial Instruments: Disclosures

(a) entities are not required to determine what the profit or loss
for the period would have been if relevant risk variables had
been different. Instead, entities disclose the effect on profit or
loss and equity at the end of the reporting period assuming
that a reasonably possible change in the relevant risk variable
had occurred at the end of the reporting period and had been
applied to the risk exposures in existence at that date. For
example, if an entity has a floating rate liability at the end of
the year, the entity would disclose the effect on profit or loss
(ie interest expense) for the current year if interest rates had
varied by reasonably possible amounts.
(b) entities are not required to disclose the effect on profit or loss
and equity for each change within a range of reasonably
possible changes of the relevant risk variable. Disclosure of
the effects of the changes at the limits of the reasonably
possible range would be sufficient.
B19 In determining what a reasonably possible change in the relevant
risk variable is, an entity should consider:
(a) the economic environments in which it operates. A reasonably
possible change should not include remote or ‘worst case’
scenarios or ‘stress tests’. Moreover, if the rate of change in
the underlying risk variable is stable, the entity need not alter
the chosen reasonably possible change in the risk variable.
For example, assume that interest rates are 5 per cent and an
entity determines that a fluctuation in interest rates of ±50
basis points is reasonably possible. It would disclose the
effect on profit or loss and equity if interest rates were to
change to 4.5 per cent or 5.5 per cent. In the next period,
interest rates have increased to 5.5 per cent. The entity
continues to believe that interest rates may fluctuate by ±50
basis points (ie that the rate of change in interest rates is
stable). The entity would disclose the effect on profit or loss
and equity if interest rates were to change to 5 per cent or 6
per cent. The entity would not be required to revise its
assessment that interest rates might reasonably fluctuate by
±50 basis points, unless there is evidence that interest rates
have become significantly more volatile.
 Ind AS 107, Financial Instruments: Disclosures

(b) the time frame over which it is making the assessment. The
sensitivity analysis shall show the effects of changes that are
considered to be reasonably possible over the period until the
entity will next present these disclosures, which is usually its
next annual reporting period.
B20 Paragraph 41 permits an entity to use a sensitivity analysis that
reflects interdependencies between risk variables, such as a value-
at-risk methodology, if it uses this analysis to manage its exposure
to financial risks. This applies even if such a methodology measures
only the potential for loss and does not measure the potential for
gain. Such an entity might comply with paragraph 41(a) by
disclosing the type of value-at-risk model used (eg whether the
model relies on Monte Carlo simulations), an explanation about how
the model works and the main assumptions (eg the holding period
and confidence level). Entities might also disclose the historical
observation period and weightings applied to observations within
that period, an explanation of how options are dealt with in the
calculations, and which volatilities and correlations (or, alternatively,
Monte Carlo probability distribution simulations) are used.
B21 An entity shall provide sensitivity analyses for the whole of its
business, but may provide different types of sensitivity analysis for
different classes of financial instruments.

Interest rate risk

B22 Interest rate risk arises on interest-bearing financial instruments
recognised in the balance sheet (eg debt instruments acquired or
issued) and on some financial instruments not recognised in the
balance sheet (eg some loan commitments).

Currency risk
B23 Currency risk (or foreign exchange risk) arises on financial
instruments that are denominated in a foreign currency, ie in a
currency other than the functional currency in which they are
measured. For the purpose of this Ind AS, currency risk does not
arise from financial instruments that are non-monetary items or from
financial instruments denominated in the functional currency.
B24 A sensitivity analysis is disclosed for each currency to which an
entity has significant exposure.
 Ind AS 107, Financial Instruments: Disclosures

Other price risk

B25 Other price risk arises on financial instruments because of changes
in, for example, commodity prices or equity prices. To comply with
paragraph 40, an entity might disclose the effect of a decrease in a
specified stock market index, commodity price, or other risk variable.
For example, if an entity gives residual value guarantees that are
financial instruments, the entity discloses an increase or decrease in
the value of the assets to which the guarantee applies.
B26 Two examples of financial instruments that give rise to equity price
risk are (a) a holding of equities in another entity and (b) an
investment in a trust that in turn holds investments in equity
instruments. Other examples include forward contracts and options
to buy or sell specified quantities of an equity instrument and swaps
that are indexed to equity prices. The fair values of such financial
instruments are affected by changes in the market price of the
underlying equity instruments.
B27 In accordance with paragraph 40(a), the sensitivity of profit or loss
(that arises, for example, from instruments measured at fair value
through profit or loss) is disclosed separately from the sensitivity of
other comprehensive income (that arises, for example, from
investments in equity instruments whose changes in fair value are
presented in other comprehensive income).
B28 Financial instruments that an entity classifies as equity instruments
are not remeasured. Neither profit or loss nor equity will be affected
by the equity price risk of those instruments. Accordingly, no
sensitivity analysis is required.

Derecognition (paragraphs 42C–42H)

Continuing involvement (paragraph 42C)
B29 The assessment of continuing involvement in a transferred financial
asset for the purposes of the disclosure requirements in paragraphs
42E–42H is made at the level of the reporting entity. For example, if
a subsidiary transfers to an unrelated third party a financial asset in
which the parent of the subsidiary has continuing involvement, the
subsidiary does not include the parent’s involvement in the
 Ind AS 107, Financial Instruments: Disclosures

assessment of whether it has continuing involvement in the

transferred asset in its separate or individual financial statements (ie
when the subsidiary is the reporting entity). However, a parent would
include its continuing involvement (or that of another member of the
group) in a financial asset transferred by its subsidiary in
determining whether it has continuing involvement in the transferred
asset in its consolidated financial statements (ie when the reporting
entity is the group).
B30 24An entity does not have a continuing involvement in a transferred
financial asset if, as part of the transfer, it neither retains any of the
contractual rights or obligations inherent in the transferred financial
asset nor acquires any new contractual rights or obligations relating
to the transferred financial asset. An entity does not have continuing
involvement in a transferred financial asset if it has neither an
interest in the future performance of the transferred financial asset
nor a responsibility under any circumstances to make payments in
respect of the transferred financial asset in the future. The term
‘payment’ in this context does not include cash flows of the
transferred financial asset that an entity collects and is required to
remit to the transferee.
B30A 25When an entity transfers a financial asset, the entity may retain the
right to service that financial asset for a fee that is included in, for
example, a servicing contract. The entity assesses the servicing
contract in accordance with the guidance in paragraphs 42C and
B30 to decide whether the entity has continuing involvement as a
result of the servicing contract for the purposes of the disclosure
requirements. For example, a servicer will have continuing
involvement in the transferred financial asset for the purposes of the
disclosure requirements if the servicing fee is dependent on the
amount or timing of the cash flows collected from the transferred
financial asset. Similarly, a servicer has continuing involvement for
the purposes of the disclosure requirements if a fixed fee would not
be paid in full because of non-performance of the transferred
financial asset. In these examples, the servicer has an interest in the
future performance of the transferred financial asset. This
assessment is independent of whether the fee to be received is
expected to compensate the entity adequately for performing the

24 Substituted vide Notification No. G.S.R. 365(E) dated 30th March, 2016.
25 Inserted vide Notification No. G.S.R. 365(E) dated 30 th March, 2016.
 Ind AS 107, Financial Instruments: Disclosures

servicing.
B31 Continuing involvement in a transferred financial asset may result
from contractual provisions in the transfer agreement or in a
separate agreement with the transferee or a third party entered into
in connection with the transfer.

Transferred financial assets that are not

derecognised in their entirety (paragraph 42D)
B32 Paragraph 42D requires disclosures when part or all of the
transferred financial assets do not qualify for derecognition. Those
disclosures are required at each reporting date at which the entity
continues to recognise the transferred financial assets, regardless of
when the transfers occurred.

Types of continuing involvement (paragraphs

42E–42H)
B33 Paragraphs 42E–42H require qualitative and quantitative disclosures
for each type of continuing involvement in derecognised financial
assets. An entity shall aggregate its continuing involvement into
types that are representative of the entity’s exposure to risks. For
example, an entity may aggregate its continuing involvement by type
of financial instrument (eg guarantees or call options) or by type of
transfer (eg factoring of receivables, securitisations and securities
lending).

Maturity analysis for undiscounted cash outflows

to repurchase transferred assets (paragraph
42E(e))
B34 Paragraph 42E(e) requires an entity to disclose a maturity analysis
of the undiscounted cash outflows to repurchase derecognised
financial assets or other amounts payable to the transferee in
respect of the derecognised financial assets, showing the remaining
contractual maturities of the entity’s continuing involvement. This
analysis distinguishes cash flows that are required to be paid (eg
forward contracts), cash flows that the entity may be required to pay
(eg written put options) and cash flows that the entity might choose
to pay (eg purchased call options).
 Ind AS 107, Financial Instruments: Disclosures

B35 An entity shall use its judgement to determine an appropriate

number of time bands in preparing the maturity analysis required by
paragraph 42E(e). For example, an entity might determine that the
following maturity time bands are appropriate:
(a) not later than one month;
(b) later than one month and not later than three months;
(c) later than three months and not later than six months;
(d) later than six months and not later than one year;
(e) later than one year and not later than three years;
(f) later than three years and not later than five years; and
(g) more than five years.
B36 If there is a range of possible maturities, the cash flows are included
on the basis of the earliest date on which the entity can be required
or is permitted to pay.

Qualitative information (paragraph 42E(f))

B37 The qualitative information required by paragraph 42E(f) includes a
description of the derecognised financial assets and the nature and
purpose of the continuing involvement retained after transferring
those assets. It also includes a description of the risks to which an
entity is exposed, including:
(a) a description of how the entity manages the risk inherent in its
continuing involvement in the derecognised financial assets.
(b) whether the entity is required to bear losses before other
parties, and the ranking and amounts of losses borne by
parties whose interests rank lower than the entity’s interest in
the asset (ie its continuing involvement in the asset).
(c) a description of any triggers associated with obligations to
provide financial support or to repurchase a transferred
financial asset.

Gain or loss on derecognition (paragraph 42G(a))

B38 Paragraph 42G(a) requires an entity to disclose the gain or loss on
derecognition relating to financial assets in which the entity has
continuing involvement. The entity shall disclose if a gain or loss on
 Ind AS 107, Financial Instruments: Disclosures

derecognition arose because the fair values of the components of

the previously recognised asset (ie the interest in the asset
derecognised and the interest retained by the entity) were different
from the fair value of the previously recognised asset as a whole. In
that situation, the entity shall also disclose whether the fair value
measurements included significant inputs that were not based on
observable market data, as described in paragraph 27A.

Supplementary information (paragraph 42H)

B39 The disclosures required in paragraphs 42D–42G may not be
sufficient to meet the disclosure objectives in paragraph 42B. If this
is the case, the entity shall disclose whatever additional information
is necessary to meet the disclosure objectives. The entity shall
decide, in the light of its circumstances, how much additional
information it needs to provide to satisfy the information needs of
users and how much emphasis it places on different aspects of the
additional information. It is necessary to strike a balance between
burdening financial statements with excessive detail that may not
assist users of financial statements and obscuring information as a
result of too much aggregation.

Offsetting financial assets and financial liabilities

(paragraphs 13A–13F).
Scope (paragraph 13A)
B40 The disclosures in paragraphs 13B–13E are required for all
recognised financial instruments that are set off in accordance with
paragraph 42 of Ind AS 32. In addition, financial instruments are
within the scope of the disclosure requirements in paragraphs 13B–
13E if they are subject to an enforceable master netting
arrangement or similar agreement that covers similar financial
instruments and transactions, irrespective of whether the financial
instruments are set-off in accordance with paragraph 42 of Ind AS
32.
B41 The similar agreements referred to in paragraphs 13A and B40
include derivative clearing agreements, global master repurchase
agreements, global master securities lending agreements, and any
related rights to financial collateral. The similar financial instruments
and transactions referred to in paragraph B40 include derivatives,
 Ind AS 107, Financial Instruments: Disclosures

sale and repurchase agreements, reverse sale and repurchase

agreements, securities borrowing, and securities lending
agreements. Examples of financial instruments that are not within
the scope of paragraph 13A are loans and customer deposits at the
same institution (unless they are set-off in the balance sheet), and
financial instruments that are subject only to a collateral agreement.

Disclosure of quantitative information for recognised financial

assets and recognised financial liabilities within the scope of
paragraph 13A (paragraph 13C)
B42 Financial instruments disclosed in accordance with paragraph 13C
may be subject to different measurement requirements (for example,
a payable related to a repurchase agreement may be measured at
amortised cost, while a derivative will be measured at fair value). An
entity shall include instruments at their recognised amounts and
describe any resulting measurement differences in the related
disclosures.

Disclosure of the gross amounts of recognised financial assets

and recognised financial liabilities within the scope of
paragraph 13A (paragraph 13C(a))
B43 The amounts required by paragraph 13C(a) relate to recognised
financial instruments that are set-off in accordance with paragraph
42 of Ind AS 32. The amounts required by paragraph 13C(a) also
relate to recognised financial instruments that are subject to an
enforceable master netting arrangement or similar agreement
irrespective of whether they meet the offsetting criteria. However,
the disclosures required by paragraph 13C(a) do not relate to any
amounts recognised as a result of collateral agreements that do not
meet the offsetting criteria in paragraph 42 of Ind AS 32. Instead,
such amounts are required to be disclosed in accordance with
paragraph 13C(d).

Disclosure of the amounts that are set-off in accordance with

the criteria in paragraph 42 of Ind AS 32 (paragraph 13C(b))
B44 Paragraph 13C(b) requires that entities disclose the amounts set-off
in accordance with paragraph 42 of Ind AS 32 when determining the
net amounts presented in the balance sheet. The amounts of both
the recognised financial assets and the recognised financial
 Ind AS 107, Financial Instruments: Disclosures

liabilities that are subject to set-off under the same arrangement will
be disclosed in both the financial asset and financial liability
disclosures. However, the amounts disclosed (in, for example, a
table) are limited to the amounts that are subject to set-off. For
example, an entity may have a recognised derivative asset and a
recognised derivative liability that meet the offsetting criteria in
paragraph 42 of Ind AS 32. If the gross amount of the derivative
asset is larger than the gross amount of the derivative liability, the
financial asset disclosure table will include the entire amount of the
derivative asset (in accordance with paragraph 13C(a)) and the
entire amount of the derivative liability (in accordance with
paragraph 13C(b)). However, while the financial liability disclosure
table will include the entire amount of the derivative liability (in
accordance with paragraph 13C(a)), it will only include the amount
of the derivative asset (in accordance with paragraph 13C(b)) that is
equal to the amount of the derivative liability.

Disclosure of the net amounts presented in the balance sheet

(paragraph 13C(c))
B45 If an entity has instruments that meet the scope of these disclosures
(as specified in paragraph 13A), but that do not meet the offsetting
criteria in paragraph 42 of Ind AS 32, the amounts required to be
disclosed by paragraph 13C(c) would equal the amounts required to
be disclosed by paragraph 13C(a).
B46 The amounts required to be disclosed by paragraph 13C(c) must be
reconciled to the individual line item amounts presented in the
balance sheet. For example, if an entity determines that the
aggregation or disaggregation of individual financial statement line
item amounts provides more relevant information, it must reconcile
the aggregated or disaggregated amounts disclosed in paragraph
13C(c) back to the individual line item amounts presented in the
balance sheet.

Disclosure of the amounts subject to an enforceable master

netting arrangement or similar agreement that are not otherwise
included in paragraph 13C(b) (paragraph 13C(d))
B47 Paragraph 13C(d) requires that entities disclose amounts that are
subject to an enforceable master netting arrangement or similar
agreement that are not otherwise included in paragraph 13C(b).
 Ind AS 107, Financial Instruments: Disclosures

Paragraph 13C(d)(i) refers to amounts related to recognised

financial instruments that do not meet some or all of the offsetting
criteria in paragraph 42 of Ind AS 32 (for example, current rights of
set-off that do not meet the criterion in paragraph 42(b) of Ind AS
32, or conditional rights of set-off that are enforceable and
exercisable only in the event of default, or only in the event of
insolvency or bankruptcy of any of the counterparties).
B48 Paragraph 13C(d)(ii) refers to amounts related to financial collateral,
including cash collateral, both received and pledged. An entity shall
disclose the fair value of those financial instruments that have been
pledged or received as collateral. The amounts disclosed in
accordance with paragraph 13C(d)(ii) should relate to the actual
collateral received or pledged and not to any resulting payables or
receivables recognised to return or receive back such collateral.

Limits on the amounts disclosed in paragraph 13C(d)

(paragraph 13D)
B49 When disclosing amounts in accordance with paragraph 13C(d), an
entity must take into account the effects of over-collateralisation by
financial instrument. To do so, the entity must first deduct the
amounts disclosed in accordance with paragraph 13C(d)(i) from the
amount disclosed in accordance with paragraph 13C(c). The entity
shall then limit the amounts disclosed in accordance with paragraph
13C(d)(ii) to the remaining amount in paragraph 13C(c) for the
related financial instrument. However, if rights to collateral can be
enforced across financial instruments, such rights can be included in
the disclosure provided in accordance with paragraph 13D.

Description of the rights of set-off subject to enforceable

master netting arrangements and similar agreements
(paragraph 13E)
B50 An entity shall describe the types of rights of set-off and similar
arrangements disclosed in accordance with paragraph 13C(d),
including the nature of those rights. For example, an entity shall
describe its conditional rights. For instruments subject to rights of
set-off that are not contingent on a future event but that do not meet
the remaining criteria in paragraph 42 of Ind AS 32, the entity shall
describe the reason(s) why the criteria are not met. For any financial
collateral received or pledged, the entity shall describe the terms of
 Ind AS 107, Financial Instruments: Disclosures

the collateral agreement (for example, when the collateral is

restricted).

Disclosure by type of financial instrument or by counterparty

B51 The quantitative disclosures required by paragraph 13C(a)–(e) may
be grouped by type of financial instrument or transaction (for
example, derivatives, repurchase and reverse repurchase
agreements or securities borrowing and securities lending
agreements).
B52 Alternatively, an entity may group the quantitative disclosures
required by paragraph 13C(a)–(c) by type of financial instrument,
and the quantitative disclosures required by paragraph 13C(c)–(e)
by counterparty. If an entity provides the required information by
counterparty, the entity is not required to identify the counterparties
by name. However, designation of counterparties (Counterparty A,
Counterparty B, Counterparty C, etc) shall remain consistent from
year to year for the years presented to maintain comparability.
Qualitative disclosures shall be considered so that further
information can be given about the types of counterparties. When
disclosure of the amounts in paragraph 13C(c)–(e) is provided by
counterparty, amounts that are individually significant in terms of
total counterparty amounts shall be separately disclosed and the
remaining individually insignificant counterparty amounts shall be
aggregated into one line item.

Other
B53 The specific disclosures required by paragraphs 13C–13E are
minimum requirements. To meet the objective in paragraph 13B an
entity may need to supplement them with additional (qualitative)
disclosures, depending on the terms of the enforceable master
netting arrangements and related agreements, including the nature
of the rights of set-off, and their effect or potential effect on the
entity’s financial position.
 Ind AS 107, Financial Instruments: Disclosures

Appendix C
References to matters contained in other Indian
Accounting Standards
This Appendix is an integral part of the Ind AS.
This appendix lists the appendices which are part of other Indian Accounting
Standards and makes reference to Ind AS 107, Financial Instruments:
Disclosures.
1. Appendix A, Distributions of Non-cash Assets to Owners, contained
in Ind AS 10, Events After the Reporting Period
2. 26AppendixD, Service Concession Arrangements, contained in Ind
AS 115, Revenue from Contracts with Customers.

26 Substituted vide Notification No. G.S.R. 365(E) dated 30th March, 2016 and,
thereafter, substituted vide Notification No. G.S.R. 310(E) dated 28th March, 2018.
 Ind AS 107, Financial Instruments: Disclosures

Appendix 1
Note: This Appendix is not a part of the Indian Accounting Standard. The purpose of
this Appendix is only to bring out the major differences, if any, between Indian
Accounting Standard (Ind AS) 107 and the corresponding International Financial
Reporting Standard (IFRS) 7, Financial Instruments: Disclosures, issued by the
International Accounting Standards Board.

Comparison with IFRS 7, Financial Instruments:

Disclosures
1 The transitional provisions given in IFRS 7 have not been given in
Ind AS 107, since all transitional provisions related to Ind ASs,
wherever considered appropriate have been included in Ind AS 101,
First-time Adoption of Indian Accounting Standards corresponding to
IFRS 1, First-time Adoption of International Financial Reporting
Standards.
2 Different terminology is used, as used in existing laws eg, the term
‘balance sheet’ is used instead of ‘Statement of financial position’
and ‘Statement of profit and loss’ is used instead of ‘Statement of
comprehensive income’. Words ‘approved for issue’ have been used
instead of ‘authorised for issue’ in the context of financial statements
considered for the purpose of events after the reporting period.
3 Requirements regarding disclosure of description of gains and
losses presented in the separate income statement, where separate
income statement is presented, have been deleted. This change is
consequential to the removal of option regarding two statement
approach in Ind AS 1 as compared to IAS 1. Ind AS 1 requires that
the components of profit or loss and components of other
comprehensive income shall be presented as a part of the statement
of profit and loss.
4 The following paragraph numbers appear as ‘Deleted’ in IFRS 7. In
order to maintain consistency with paragraph numbers of IFRS 7 ,
the paragraph numbers are retained in Ind AS 107 :
(i) paragraph 3(c)
(ii) paragraph 8(b)-(d)
(iii) paragraph 12-12A
 Ind AS 107, Financial Instruments: Disclosures

(iv) paragraph 13
(v) paragraph 16
(vi) paragraph 20(a) (ii)-(iv) and 20(d)-(e)
(vii) paragraph 22
(viii) paragraph 23
(ix) paragraph 24
(x) paragraph 27-27B
(xi) paragraph 29(b)
(xii) paragraph 36 (c)-(d)
(xiii) paragraph 37
(xiv) paragraph B4 of Appendix B
(xv) paragraph B5 (b), (d), (f) & (g)
(xvi) paragraphs B12-B16 of Appendix B
5 27Paragraphs 42I-42S of IFRS 7 have not been included in Ind AS
107 as these paragraphs relate to initial application of IFRS 9 which
are not relevant in Indian context. Paragraphs 43-44BB related to
effective date and transition given in IFRS 7 have not been given in
Ind AS 107 since it is not relevant in Indian context. However, in
order to maintain consistency with paragraph numbers of IFRS 7,
these paragraph numbers are retained in Ind AS 107. Paragraph
44DD relates to IFRS 17, Insurance Contracts, for which
corresponding Ind AS is under formulation.

27
Inserted vide Notification No. G.S.R. 273(E) dated 30th March, 2019 and, thereafter,
substituted vide Notification No. G.S.R. 463(E) dated 24th July, 2020.