Standard 107: Financial Instruments Disclosures

Standard 107: Financial Instruments Disclosures · Complied AI

(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.

42 I-42S 12 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 13 Ind AS 117 amended paragraphs 3 , 8 and 29 and deleted paragraph 30. An entity shall apply those amendments when it applies Ind AS 117.

44EE 14 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.

44FF 15 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.

44GG 16 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.

44HH 17 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.

44II 18 Disclosure of Accounting Policies, which amends Ind AS 1 amended paragraphs 21 and B5 . An entity shall apply that amendment for annual reporting periods beginning on or after 1 April 2023.

44JJ 19 Supplier Finance Arrangements , which also amended Ind AS 7 , amended paragraph B11F . An entity shall apply that amendment when it applies the amendments to Ind AS 7.

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 grades

Rating of credit risk based on the risk of a default 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 risk

The risk that the fair value or future cash flows of a 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 payable

Loans payable are financial liabilities, other than short- 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 risk

The risk that the fair value or future cash flows of a 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.

amortised cost of a financial asset or financial liability

contract asset

credit-impaired financial assets

derecognition

derivative

dividends

effective interest method

20 effective 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

21 gross carrying amount of a financial asset

hedging instrument

held for trading

impairment gains or losses

loss allowance

22 past due

purchased or originated credit-impaired financial assets

reclassification date

regular way purchase or sale

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:

(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 24 To 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).

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:

(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.

B8I 25 The 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:

(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.

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 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 28 An 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 29 When 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 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).

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:

(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 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, 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 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).

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 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.

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 30 Appendix D, Service Concession Arrangements , contained in Ind AS 115, Revenue from Contracts with Customers.

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

(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)

31 paragraph 29(b) and (c)

(xii)

paragraph 30

(xiii)

paragraph 36 (c) and (d)

(xiv)

paragraph 37

(xv)

paragraph B4 of Appendix B

(xvi)

paragraph B5 (b), (d), (f) and (g)

(xvii)

paragraphs B12-B16 of Appendix B

5 32 Paragraphs 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.

Footnotes

Notes, amendments & references (34)

# 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, G.S.R. 419(E) dated 18th June, 2021, G.S.R. 242(E) dated 31st March, 2023, G.S.R. 492(E) dated 12th August, 2024 and G.S.R. 549(E) dated 13th August, 2025.

1 Substituted vide Notification No. G.S.R. 492(E) dated 12th August, 2024.

2 Substituted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016 and, thereafter, substituted vide Notification No. G.S.R. 310(E) dated 28 th March, 2018.

3 Substituted vide Notification No. G.S.R. 492(E) dated 12th August, 2024.

4 Substituted vide Notification No. G.S.R. 365(E) dated 30th March, 2016 and, thereafter, substituted vide Notification No. G.S.R. 242(E) dated 31st March, 2023.

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

6 Heading and paragraph 24H inserted vide Notification No. G.S.R. 463(E) dated 24 th July, 2020.

7 Heading and paragraphs 24I-24J inserted vide Notification No. G.S.R. 419(E) dated 18 th June, 2021.

8 Substituted vide Notification No. G.S.R. 492(E) dated 12th August, 2024.

9 Substituted vide Notification No. G.S.R. 492(E) dated 12th August, 2024.

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

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

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

* Refer Appendix 1

13 Inserted vide Notification No. G.S.R. 463(E) dated 24 t h July, 2020 and, thereafter, substituted vide Notification No. G.S.R. 492(E) dated 12th August, 2024.

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

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

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

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

18 Inserted vide Notification No. G.S.R. 242(E) dated 31st March, 2023.

19 Inserted vide Notification No. G.S.R. 549(E) dated 13th August, 2025.

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

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

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

23 Substituted vide Notification No. G.S.R. 365(E) dated 30th March, 2016 and, thereafter, substituted vide Notification No. G.S.R. 242(E) dated 31st March, 2023.

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

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

26 Substituted vide Notification No. G.S.R. 273(E) dated 30 th March, 2019.

27 Sub-items (h)-(j) substituted vide Notification No. G.S.R. 549(E) dated 13th August, 2025.

28 Substituted vide Notification No. G.S.R. 365(E) dated 30 th March, 2016.

29 Inserted vide Notification No. G.S.R. 365(E) dated 30 th March, 2016.

30 Substituted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016 and, thereafter, substituted vide Notification No. G.S.R. 310(E) dated 28 th March, 2018.

31 Sub paragraphs (xi) to (xvii) substituted vide Notification No. G.S.R. 492(E) dated 12th August, 2024.

32 Inserted vide Notification No. G.S.R. 273(E) dated 30 th March, 2019 and, thereafter, substituted vide Notification No. G.S.R. 463(E) dated 24 th July, 2020 and G.S.R. 492(E) dated 12th August, 2024.