IFRS 7
IFRS 7 “Financial Instruments: Disclosures” is a summary of present regulations for disclosing financial instruments contained in IAS 32 and IAS 30. IFRS 7 is likewise to be applied by all companies holding on balance-sheet and off-balance sheet financial instruments. The objective of disclosure regulations is to provide information relevant to decision making concerning the amount, the timing and the probability of future cash flows resulting from financial instruments. In comparison to IAS 32, both qualitative and quantitative requirements for information on risk reporting in the notes have increased significantly. This means that it is imperative that either a sensitivity analysis be conducted or that risks be quantified by means of a value at risk method.