AASB 1060 General Purpose Financial Statements Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities 111-119C: Basic financial instruments: disclose material measurement policies, carrying amounts by AASB 9 category, the significance of instruments including the terms of long-term debt, the fair value basis and valuation assumptions by class, transferred assets not derecognised, pledged collateral, defaults and breaches on loans payable, the income, expense, gains and losses by category with interest income and expense and impairment by class, and contingent cash flow features by class

What does 111-119C require?

For every financial instrument within AASB 9, the entity gives material policy information including measurement bases, and the total carrying amounts of financial assets and liabilities measured at fair value with changes in profit or loss, at amortised cost, and at fair value with changes in OCI (showing the mandatory debt category and designated equity investments separately). It discloses what users need to judge the significance of instruments, such as the rate, maturity, repayment profile and covenants of long-term debt. For instruments at fair value it states the basis (quoted price or valuation technique) and, for a technique, the assumptions by class such as prepayment rates, estimated credit losses and discount rates. Transferred financial assets that fail derecognition are described by class with the risks retained and the carrying amounts of those assets and of the associated liabilities; pledged financial assets are disclosed with their carrying amount and pledge terms; unremedied breaches or defaults on loans payable are disclosed with the carrying amount and whether they were remedied or renegotiated before authorisation of the statements. Income, expense, gains and losses are disclosed by measurement category (including the OCI gain or loss on debt instruments at fair value through OCI and the amount reclassified on derecognition), with total interest income and expense under the effective interest method for instruments not carried at fair value with changes in profit or loss and the impairment loss for each class. For instruments whose contractual cash flows can change on a contingent event unrelated to basic lending risks (for example an emissions-linked loan), the entity describes the event, quantifies the possible cash flow changes and gives the gross carrying or amortised cost amounts affected, by class and at an appropriate level of aggregation.