Ind AS 107 Financial Instruments: Disclosure

1 Ind AS 107 Financial instruments : Disclosure 1 To 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 Objective 2 This standard is applicable to all Financial instruments except: Interest in Subsidiaries, joint ventures, associates etc.

2 (110/27/28) Rights and Obligation under Employees benefit plans (19) Insurance contracts. (104) instruments where share based payments are involved (102) Puttable intruments disclosed as Equity instruments (Para 16A of Ind As 32) SCOPE 3 The carrying amounts of each of the following categories: (FVTPL) Financial assets and Financial liabilities measured at fair value through profit or loss. Separate Disclosure for designated as such and others. Financial assets and Financial liabilities measured at amortized cost.

3 Financial assets measured at fair value through other comprehensive I ncome (FVTOCI). No 4\slide , Slide No 4\DHS Para 40 on Pg 134---Slide no Disclosure -Balance sheet 4 For Designated Financial assets at fair value through profit or loss (FVTPL) a)the maximum exposure to credit risk of the Financial asset at the end of the reporting period. b) the amount by which any related credit derivatives or similar instruments ( Like collaterals) mitigate that maximum exposure to credit risk.

4 C)Slide No 5\DHS Pg 132 para Disclosure -Balance sheet 5 For Designated (FVTPL).. The amount of change, during the period and cumulatively, in the fair value of : (i)the Financial asset (or group of Financial assets) that is attributable to changes in the credit risk of the Financial asset. (ii)related credit derivatives or similar instruments like collaterals Disclosure -Balance sheet 6 Financial liabilities (FVTPL) at fair value through profit or loss, it shall disclose- a)(For Designated & Others) the amount of change, during the period and cumulatively, in the fair value attributable to changes in the credit risk and b)(For Designated & Others)the difference between the Financial liability s carrying amount and the amount payable on maturity Eg.

5 Slide No 7\DHS Pg 133 para Disclosure -Balance sheet 7 Financial liabilities (FVTPL) .. c)(For Designated) any transfers of the cumulative gain or loss within equity during the period including the reason for such transfers.( Change in fair value due to credit risk is taken to OCI which may be transferred to other reserves once liability is extinguished.) c)(For Designated) amount (if any) presented in other comprehensive income that was realised at derecognition. Disclosure -Balance sheet 8 Investments in equity instruments designated at FVTOCI Required to disclose: (a)Details of such investments in equity instruments .

6 (Name /Amount etc) (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 recognized during the period, (showing separately on de-recognized and on hold investments ). (e)any transfers of the cumulative gain or loss within equity during the period including the reason for such transfers. ( Para of 109 restrict trf to P&L) Disclosure -Balance sheet 9 If an entity de-recognized investments in equity instruments measured at FVTOCI, it shall disclose: (a)the reasons for disposing of the investments.

7 (b)the fair value of the investments at the date of de-recognition. (c)the cumulative gain or loss on disposal. Disclosure -Balance sheet 10 Reclassification of Financial Assets For reclassified Financial assets in current or previous reporting periods, 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.

8 Disclosure -Balance sheet 11 Reclassification of Financial Assets For each reporting period following reclassification until de-recognition FVTPL to Amortised Cost or FVTOCI : (a)the effective interest rate determined on the date of reclassification; and (b) the interest revenue recognized. Disclosure -Balance sheet 12 Reclassification of Financial Assets For reclassification after last annual reporting date FVTOCI to Amortised Cost or FVTPL : (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 P&L or OCI if the Financial assets had not been reclassified.

9 Disclosure -Balance sheet 13 Offsetting Financial assets and Financial liabilities: a)Gross amounts of those recognized Financial assets and recognized Financial liabilities; b)the amounts that are set-off c)the net amounts presented in the balance sheet; d) amounts related to Financial collateral (including cash collateral); and e)the net amount after deducting collateral Disclosure -Balance sheet 14 Collateral Provided : (a) the carrying amount of Financial assets pledged and (b) its terms and conditions Collateral Received : (a)the fair value of the collateral held; (b)the fair value of any such collateral sold or re-pledged, and whether the entity has an obligation to return it.

10 And (c)its terms and conditions (d)Slide No 15\DHS Pg 139 para Disclosure -Balance sheet 15 Compound Financial instruments with multiple embedded derivatives If an entity has issued an instrument that contains both a liability and an equity component 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. Eg1 Slide No 16\DHS Page Eg2 Slide No 16\Vedanta pg 143 & Disclosure -Balance sheet 16 This image cannot currently be image cannot currently be displayed.