The Accounting Standards Board (ASB) has published amendments to enhance the disclosures on transfers of financial assets.
The amendments relate to disclosure requirements in FRS 29 (IFRS 7) ‘Financial Instruments: Disclosures’ and will enable users of financial statements to evaluate an entity’s risk exposure arising from transfers of financial assets and any resulting impact on the financial position.
The amendments enhance the information currently provided in financial statements in relation to risk exposures arising from transfers of financial assets by an entity. The changes are identical to those made by the IASB ensuring the requirements in the two standards do not diverge.
The ASB said the need for the proposed amendment is a result of the International Accounting Standards Board amendments of the disclosure requirements in IFRS 7 Financial Instruments: Disclosures in October 2010.
Entities are required to apply the amendments for annual periods beginning on or after 1 July 2011.