GROUP C11
370 – Mukesh
ACCOUNTANC Gwalani
371 – Shuvam
Y& Hatui
FINANCIAL 372 – Gautami
Hegde
MANAGEMENT 373 – Riya Hegde
IV 374 – Tanisha
Hemani
375 – Sahil
Hemnani
376 – Himanshu
Hinger Jain
TOPIC
IND AS 107 –
FINANCIAL
INSTRUMENTS
DISCLOSURES
2 IND AS 107 2022-23
WHAT ARE FINANCIAL
INSTRUMENTS?
Financial instruments are
monetary contracts
between parties. They can
be created, traded,
modified and settled.
They can be cash,
evidence of an ownership
interest in an entity or a
contractual right to
receive or deliver in the
form of currency; debt;
equity; or derivatives.
3 IND AS 107 2022-23
TYPES OF
FINANCIAL
INSTRUMENTS
4
OBJECTIVE
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:
• The significance of financial instruments for the
entity’s financial position and performance; and
• 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.
5 IND AS 107 2022-23
NATURE AND EXTENT OF RISKS
ARISING FROM FINANCIAL
INSTRUMENTS
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.
The disclosures required focus on the risks that arise
from financial instruments and how they have been
managed.
6 IND AS 107 2022-23
SCOPE
Interests in subsidiaries
Associates and joint
ventures
This Ind AS shall be Leasing commitments
applied by all entities
to all types of Employee benefits
financial instruments,
Financial instruments
except: resulting in business
combination
Insurance contracts
7 IND AS 107 2022-23
SIGNIFICANCE OF FINANCIAL
INSTRUMENTS FOR FINANCIAL
POSITION AND PERFORMANCE
An entity shall Management’s The use of financial
disclose failure to fully instruments can
understand the reduce exposures to
information risks inherent in a certain business
that enables financial risks, for example
users of its instrument can changes in
financial have a direct effect exchange rates. The
statements to on management’s use of financial
ability to manage instruments can
evaluate the these risks reduce exposures to
significance of appropriately, and certain business
financial may ultimately risks, for example
instruments for threaten the changes in
its financial viability of the exchange rates.
entity.IND AS 107
position and
8 2022-23
DISCLOSURES
The carrying amounts of each of the following categories shall be disclosed
either in the balance sheet or in the notes:
(a) financial assets and liabilities measured at fair value through profit or
loss, showing separately:
(i) those designated as such upon initial recognition
(ii) those mandatorily measured at fair value through profit or loss
(b) financial assets and liabilities measured at amortised cost.
(c) 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
(ii) investments in equity instruments designated as such upon initial
recognition
9 IND AS 107 2022-23
DISCLOSURE
S
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
(b) Total interest revenue and total interest expense
(c) Fee income and expense
10 IND AS 107 2022-23
WEBLIOGRAPHY
• https://www.mca.gov.in/Ministry/pdf/INDAS107.pdf
• https://resource.cdn.icai.org/23730IndAS-107.pdf
11 IND AS 107 2022-23
Thank you
