Sample Disclosure – Note On Effect Of Adopting FRS 7 Financial Instruments: Disclosures (5 April 2011)
Prior to 1 January 2010, information about financial instruments was disclosed in accordance with the requirements of FRS 132 Financial Instruments: Disclosure and Presentation. The Group and the Company adopted FRS 7 Financial Instruments: Disclosures (“FRS 7”) as at 1 January 2010. FRS 7 introduces new disclosures to improve on the level of disclosure of information about financial instruments. It requires the disclosure of qualitative and quantitative information about exposure to risks arising from financial instruments, including specified minimum disclosures about credit risk, liquidity risk and market risk, including sensitivity analysis to market risk.
The Group and the Company have applied FRS 7 prospectively in accordance with the transitional provisions of FRS 7 and therefore, the comparatives have not been applied with the requirement of new disclosures under FRS 7. The new disclosures are included throughout the Group’s and the Company’s financial statements for the year ended 31 December 2010.