Question

List 5 similarities and 5 differences between IAS 32 Financial Instruments: Disclosure and Presentation and IFRS 7 Financial Instruments: Disclosures

Answer 1

SIMILARITIES REGARDING DISCLOSURES BETWEEN AS 32 & IFRS 7

1. The significance of Financial instruments for the entity's financial position and performance.
2. The nature and extent of risks arising from financial instruments to which the entity is exposed during the period and how the entity manages those risks.
3. Financial assets and Financial liabilities are disclosed at fair value showing profit or loss seperately.

DIFFERENCES BETWEEN AS 32 & IFRS 7

1. AS 32 sets out the principles for presentation and classification of Financial instruments. Where as IFRS 7 Sets out disclosure of Financial instruments.
2. AS 32 does not deals with Interest in subsidiaries, associates & Joint ventures, Employee Benefits, Share Based Payments and Insurance contracts but there are no exceptions for IFRS 7 it deals with all financial instruments.
3. AS per IFRS 7 risk is disclosed as credit risk, Market risk, Liquidity risk. Where as AS 32 discloses risk to which the is exposed in Financial Instruments.
4. AS per AS 32 Offsetting between Financial assets and Financial Liabilities is done and net amount is shown in Balance sheet. But as per IFRS 7 Financial assets and Liabilities are shown at Fair Value.