IPSAS 30
Active
Financial Instruments: Disclosures
Requires an entity to disclose the significance of its financial instruments and the exposures to which it is subject. Covers classes of financial instruments and significance for financial position, fair-value designations, significance for financial performance, accounting policies, concessionary loans, and the nature and extent of credit, liquidity and market risk (qualitative and quantitative). Effective 1 January 2013. (IFRS 7 equivalent.) Complements IPSAS 28 (presentation) and IPSAS 41 (recognition/measurement).
Active Standard
IPSAS 30 Financial Instruments: Disclosures is the current, active standard issued by the IPSASB for disclosing the significance of financial instruments and the entity's risk exposures. Effective for periods beginning on or after 1 January 2013. The current Standard comprises paras. 1–53.
IPSAS 30 is the IPSASB's adaptation of IFRS 7 Financial Instruments: Disclosures for the public sector – with public-sector guidance on concessionary loans (added emphasis) and explicit linkage to IPSAS 28 (presentation) and IPSAS 41 (recognition/measurement).
1
Objective, Scope & Definitions (paras. 1–8)
Objective & scope
Requires an entity to disclose the significance of its financial instruments and the exposures to which it is exposed – for both qualitative and quantitative risk information. Applies to all financial instruments except those held for trading under IPSAS 41 unless they are designated for hedge accounting.
Key definitions
Financial instrument
A contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another.
Notional amount
The nominal or face amount by which the interest payments are determined – not the carrying amount.
Scope exclusions (para. 3)
ExcludedInstead, see…
Pension/retirement plan assetsIPSAS 19 (where applicable)
Insurance contractsIPSAS 44
Interest-bearing gov't loans (concessionary)IPSAS 30 para. 25 (special disclosure)
Disclosure is entity-wide: ALL financial instruments on or off the face of the statement of financial position.
2
Classes & Significance for Financial Position (paras. 9–13)
Required lines (para. 9)
DisclosureContent
Nature of FIKinds of instruments and risk exposures
Rolling reconciliationMovements in carrying amount by class
SignificanceAmounts derecognised during the period
Classify by instrument & exposureReconcile opening→closingShow derecognised amounts
3
Fair Value Designation Disclosures (paras. 14–19)
FV hierarchy (para. 14)
Disclose the level (1, 2 or 3) within the fair-value hierarchy for EACH class of financial assets and liabilities, with a reconciliation of movements in level 3. Required for every FV measurement (not just FVTPL).
Level 1Quoted prices (active market)Level 2Observable inputs other than Level 1Level 3Unobservable inputs
4
Significance for Financial Performance (paras. 20–24)
Impact lines (para. 20)
For each class of financial assets/liabilities: disclose the amount of interest income/expenses, realised/unrealised gains/losses and impairment recognised in the period, and the manner of determining the impaired/unrealised portion.
For assets measured at amortised cost: disclose EIR and any write-downs/write-ups separately.
5
Other Disclosures – Accounting Policies, Hedging & Fair Value (paras. 26–28)
Narrative anchors (para. 26)
Describe the accounting policy for financial instruments, how hedging is applied (and which hedge model – IPSAS 29 legacy vs IPSAS 41), significant fair-value measurement judgements, and the nature/scope of de-designations.
Accounting policy
The specific principles and methods that govern measurement and recognition.
6
Concessionary Loans (paras. 25–26)
Public-sector special (para. 25)
DisclosureContent
Nature & termsInterest rate below market, grace, forgiveness
Aggregate amountOutstanding and committed concessionary loans
IPSAS 30 gives concessionary loans heightened public-sector attention because below-market lending is common in government.
7
Nature & Extent of Risks – Qualitative & Quantitative (paras. 27–29)
The big three risks (para. 27)
Disclose the NATURE of exposure to credit risk, liquidity risk and market risk, and the QUANTITATIVE carrying amounts and notionals by class – including how exposures are measured, concentrations, and limits/capital charges where applicable.
Nature + amount for each riskConcentrations (counterparty / sector)Limits & hedging status
8
Credit Risk (paras. 30–32)
Default exposure (para. 30)
Disclose the extent of credit risk exposure: total carrying amount by segment and the 5 largest counterparties. Include maturity analysis, collateral held, and whether ECL/expected-credit-loss model applies.
Concentrations matter more for public sector given sovereign/soil exposure to single counterparties.
9
Liquidity Risk (paras. 33–34)
Cash-flow mismatches (para. 33)
AnalysisLedger
Contractual maturitiesFinancial liabilities by time bucket
Liquid assets pledgedCollateral / cash held
Disaggregate by currency for entities with foreign operations.
10
Market Risk (paras. 35–36)
FV sensitivity (para. 35)
Disclose the effect on profit or loss of a reasonably probable change in key market variables (interest rate, FX, equity) on financial instruments – typically via a sensitivity table. State the method, inputs, and assumptions used.
Value-at-Risk
A statistical estimate of potential loss over a target horizon at a given confidence level.
11
Effective Date & Amendment Timeline
Timeline
DateEvent
Dec 2011Issued
1 Jan 2013Effective date
2025Amended (latest)
Amendment relates to IFRS 7:2016 'Classification and Measurement' updates reflected in IPSAS 30 consequent amendments.
12
Relationship to IFRS 7
Mapping (para. 43)
IPSAS 30 is the IPSASB's adaptation of IFRS 7 Financial Instruments: Disclosures. The disclosures mirror IFRS 7 (classes, FV hierarchy, significance for P/L, risk exposures) but add public-sector emphasis on concessionary loans and government-specific risk concentration commentary.
IFRS 7 classesIPSAS 30 sameIFRS 7 FV hierarchyIPSAS 30 sameIFRS 7 risk disclosuresIPSAS 30 same (concessionary loans added)
13
Statement / Process Mapping (para. 43)
Where it flows
ProcessLedger
FV hierarchy buildValuation → Disclosure Engine (Level 1/2/3)
Risk dashboardsTreasury Mgmt → Credit/Liquidity/Mkt modules
Concessionary loan registerLoans Ledger → IPSAS 30 para. 25
14
Related Standards
See also
StandardRelation
IPSAS 28Presentation of FI
IPSAS 41Recognition & measurement of FI
IFRS 7Direct equivalent
15
Glossary
Credit risk
Risk that a counterparty will not meet its obligations.
Liquidity risk
Risk that an entity cannot meet short-term cash obligations.
Market risk
Risk of loss from movement in market prices (interest, FX, equity).
Fair value hierarchy
Three-level binning of FV inputs (1 quoted, 3 unobservable).
Concessionary loan
A loan at below-market interest or with favourable terms.
Expected credit loss
12-month or lifetime loss provision (ECL model).