Held to maturity assets

[kamranACA]

……..(Ali Akbar; welcome back buddy. Your presence will be a source of healthy discussion and guidance for the students and members. Congrats for your qualification.)………..


There is a full section of guidelines regarding the disclosure of Fair Values of financial assets and financial liabilities in IFRS-7. For detail, please check paragraphs 25 to 30.

Paragraph 25 of IFRS says- “Except as set out in paragraph 29, for each class of financial assets and financial liabilities, an entity shall disclose the fair value of that class of assets and liabilities in a way that permits it to be compared with its carrying amount.”

Further, paragraph 29 provides exemption from disclosing the fair value only in following cases-

(a) when the carrying amount is a reasonable approximation of fair value, for example, for financial instruments such as short-term trade receivables and payables;

(b) for an investment in equity instruments that do not have a quoted market price in an active market, or derivatives linked to such equity instruments, that is measured at cost in accordance with IAS 39 because its fair value cannot be measured reliably; or

(c) for a contract containing a discretionary participation feature (as described in IFRS 4) if the fair value of that feature cannot be measured reliably.

Regards,