This course will assist you to understand and apply the recognition and disclosure requirements for financial instruments as required by the new IFRS 9 Financial Instruments, along with IFRS 7 Financial Instruments: Disclosure and IAS 32 Financial Instruments: Presentation.
The three standards deal with different issues in relation to financial instruments, namely:
- when financial instruments should be recognised and derecognised and how, once recognised, they should be measured—this, together with hedge accounting, is the focus of IFRS 9 Financial Instruments
- the appropriate presentation of the instruments, once recognised—this is the focus of IAS 32 Financial Instruments: Presentation
- the appropriate information to disclose for both recognised and unrecognised financial instruments—this is covered in IFRS 7 Financial Instruments: Disclosure
Key topics:
- What are financial instruments?
- Definition of a financial instrument
- Liability or equity
- Instruments that are a mix of liability and equity
- Contracts to buy or sell non-financial items
- Derivative financial instruments
- Recognition and derecognition of financial assets and financial liabilities
- Classification of financial assets and financial liabilities
- Initial measurement
- Subsequent measurement of financial assets
- Impairment of financial assets
- Impairment of financial assets carried at amortised cost
- Subsequent measurement of financial liabilities
- Investments in equity securities
- Liabilities designated at fair value through profit or loss
- Compound financial instruments
- Hedging relationships
- Accounting for hedging relationships
- Special accounting rules
- Assessing hedge effectiveness
- Discontinuing hedge relationships
- Increased disclosures
- Disclosure issues
This course consists of one online course and one online assessment.
Learning objectives
- Identify primary and derivative financial instruments.
- Apply the criteria for the recognition and derecognition of financial assets and financial liabilities associated with financial instruments.
- Apply the approach to the classification, reclassification and measurement of financial assets and financial liabilities.
- Apply the fair value hedge and cash flow hedge methods.
- Measure and recognise financial instruments in the financial statements under IFRS 9 and IAS 32.
- Prepare the key disclosures required for financial instruments under IFRS 7.
Audience
This course is specifically designed for finance professionals who are involved in:
- external reporting
- financial management
- management accounting
- financial accounting
