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
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
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
Accounting for hedging relationships
Special accounting rules
Assessing hedge effectiveness
Discontinuing hedge relationships
This course consists of one online course and one online assessment.
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: