Ind AS 107: Financial Instruments Presentation#
Scope#
Applies to presentation of:
- Financial assets
- Financial liabilities
- Equity instruments
Classification#
Financial Assets
- Amortized cost
- Fair value through OCI (FVOCI)
- Fair value through profit or loss (FVPL)
Financial Liabilities
- Amortized cost
- Fair value through profit or loss (FVPL)
Presentation in Balance Sheet#
Offsetting
Financial assets and liabilities can be offset when:
- Currently enforceable
- Intention to settle net
- Right to receive/pay net amount
Equity Instruments#
Distinction between liability and equity
- Fixed number of shares = equity
- Variable number or obligation to deliver cash = liability
Compound Financial Instruments
- Separate liability and equity components
- Initial carrying amount = fair value of liability
Disclosure Requirements#
- Terms and conditions of financial instruments
- Carrying amounts by category
- Reclassifications between categories
- Gains and losses recognized