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.


This course is specifically designed for finance professionals who are involved in:

  • external reporting
  • financial management
  • management accounting
  • financial accounting

8 hours

365 Days