Disclosure and presentation

partially offsetting risk exposures.
(f) 
An entity may link two or more separate financial instruments together 
notionally in a “synthetic instrument” or for some purposes other than 
those described in items (d) and (e) above. 
(g) 
An entity may acquire or issue a financial instrument in a transaction in 
which the amount of the consideration exchanged for the instrument is 
uncertain. Such transactions may involve non-cash consideration or an 
exchange of several items.
(h) 
An entity may acquire or issue a bond, promissory note or other 
monetary instrument with a stated amount or rate of interest that differs 
from the prevailing market interest rate applicable to the instrument. 
Such financial instruments include zero coupon bonds and loans made 
on apparently favorable terms but involving non-cash consideration, 
for example, low interest rate loans to employees.
IE30. Paragraph 61 of the Standard lists several issues that an entity addresses in its 
disclosure of accounting policies when the issues are significant to the 
application of the cost basis of measurement. In the case of uncertainty about 
the collectibility of amounts realizable from a monetary financial asset or a 
decline in the fair value of a financial asset below its carrying amount due to 
other causes, an entity indicates its policies for determining:
(a) 
When to reduce the carrying amount of the asset;
(b) 
The amount to which it reduces the carrying amount;
(c) 
How to recognize any revenue from the asset; and
(d) 
Whether the reduction in carrying amount may be reversed in the 
future if circumstances change.

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FINANCIAL INSTRUMENTS: DISCLOSURE AND PRESENTATION 
IPSAS 15 ILLUSTRATIVE EXAMPLES 
438
Disclosure Requirements 
IE31. The example illustrates an economic entity which includes a number of partly-
privatized GBEs that have issued convertible notes and preference shares.
Note X1. Summary of Accounting Policies (Extract)