IFRS 7
IFRS 7 is a special set of rules that help people who run businesses keep track of the money they have and the money they owe. It's like a game where you have to make sure you don't have too much debt and you have enough money to pay your bills and your employees.
Now, imagine you have a piggy bank with a few coins in it. You don't want to lose those coins, right? So, you put them inside a special container to keep them safe. That's kind of what happens to a business's money – they need to keep it safe and easy to see so they use IFRS 7 to make sure everything is accounted for.
The IFRS 7 rules help businesses know what they owe and what they own. For example, you might have a toy at home that someone else wants to play with. If they want to borrow it, you'll need to know when they'll give it back so you know you'll still have it. Businesses use IFRS 7 to know when they'll get their money back so they can keep their business going.
That's why IFRS 7 is so important for businesses. It helps them make sure they have enough money to keep going and gives them a clear picture of what they owe, and who owes them.
Now, imagine you have a piggy bank with a few coins in it. You don't want to lose those coins, right? So, you put them inside a special container to keep them safe. That's kind of what happens to a business's money – they need to keep it safe and easy to see so they use IFRS 7 to make sure everything is accounted for.
The IFRS 7 rules help businesses know what they owe and what they own. For example, you might have a toy at home that someone else wants to play with. If they want to borrow it, you'll need to know when they'll give it back so you know you'll still have it. Businesses use IFRS 7 to know when they'll get their money back so they can keep their business going.
That's why IFRS 7 is so important for businesses. It helps them make sure they have enough money to keep going and gives them a clear picture of what they owe, and who owes them.