IFRS for SMEs / Section 11: Financial Instruments
Section 11: Financial Instruments
Section 11 covers the recognition, measurement and disclosure of financial assets and liabilities such as receivables, payables, loans and bank balances. In the third edition it brings the former Sections 11 and 12 together.
Disclosures to look for
- 11.41 For loans payable: the terms, the interest rate, the repayment terms and any security.
- 11.39 The carrying amounts of each category of financial asset and liability.
Third edition (2025 changes)
- An ageing analysis of receivables (11.43) and a maturity analysis of financial liabilities (11.43A).
On the 2015 edition
The paragraph references in this guide follow the third edition. In the 2015 edition, basic financial instruments sit in Section 11 and other financial instruments in Section 12, and the disclosure paragraphs are numbered differently: check the 2015 text for the references.
South African practice
A loan or vehicle-finance account with a debit balance usually means instalments were posted but the loan was never recognised.
How Sight applies it
The borrowings note shows each facility's lender, rate, terms and security; the pre-flight blocks when those facts are missing and flags loan accounts on the wrong side.
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