EU Formally Adopts IFRS 7 Amendments

The European Union has published the Commission Regulation (EC) No 1205/2011 endorsing the amendments to IFRS 7 Financial Instruments: Disclosures published by the IASB on 7 October 2010.

The amendments will allow users of financial statements to improve their understanding of transfer transactions of financial assets (for example, securitisations), including understanding the possible effects of any risks that may remain with the entity that transferred the assets. The amendments also require additional disclosures if a disproportionate amount of transfer transactions are undertaken around the end of a reporting period.