BC6 Although IFRS 7 arose from a project to revise IAS 30 (a Standard that applied only to banks and similar financial institutions), it applies to all entities that have financial instruments. The Board observed that the reduction in regulatory barriers in many countries and increasing competition between banks, non‑bank financial services firms, and financial conglomerates have resulted in many entities providing financial services that were traditionally provided only by entities regulated and supervised as banks. The Board concluded that this development would make it inappropriate to limit this project to banks and similar financial institutions.
BC7 The Board considered whether entities that undertake specified activities commonly undertaken by banks and other financial institutions, namely deposit‑taking, lending and securities activities, face unique risks that would require a standard specific to them. However, the Board decided that the scope of this project should includ
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