IFRS: Financial Instruments

by Wayne Bartlett
access120 days access
cpd hours4 CPD hours
price£75+vat

This course will enable you to:

  • Consider the three separate IFRS areas regarding accounting for financial instruments
  • Recognise and measure financial instruments
  • Understand how to deal with financial instruments that are transferred in full or part, or items that are derecognised
  • Understand the major features of disclosure in IFRS 7

The treatment of financial instruments can sometimes be very complex and it is necessary to have a clear understanding of the rules involved within the IFRSs to apply them properly. Getting this wrong could have a big impact on the financial statements.

There are three separate IFRS areas to consider regarding the accounting for financial instruments. IAS 32 deals with the presentation of financial instruments, IFRS 7 with their disclosure and IFRS 9 with their recognition and measurement. These Standards need to be seen as something of a package.

Overview

  • Recent changes
  • Three standards
  • Presentation and disclosure
  • Cause and effect

IAS 32 Financial Instruments Presentation

  • Overview of IAS 32
  • Objectives and scope of IAS 32
  • Some key definitions
  • Definitions
  • Initial recognition
  • Puttable instruments and settlement provisions
  • Compound financial instruments
  • Parlay Ltd’s shares
  • Interest, dividends, losses and gains
  • Offsetting financial assets and liabilities
  • Statement of financial position
  • Three impacts

IFRS 9 Financial Instruments

  • Overview of IFRS 9
  • A potted history
  • Timings
  • Recognition and derecognition
  • Accounting treatments
  • Classification and measurement
  • Two tests
  • Barnaby Ruffles' securities
  • IFRS 9 and impairment
  • Impairment
  • Credit Cars' ECLs
  • Impacts
  • Are you up to Standard?

IFRS 9 and Hedge Accounting

  • Hedge accounting
  • Objectives and scope
  • Which items qualify as hedges?
  • Accounting for hedging relationships
  • Hedging groups of items

IFRS 7 Financial Instruments: Disclosures

  • Overview of IFRS 7
  • Objectives and scope of IFRS 7
  • Statement of financial position
  • McGarry & Co's disclosures
  • What's your position?
  • Statement of comprehensive income
  • Hedge accounting disclosures
  • Risk disclosures
  • Hedging and risk
  • Transfers
  • Your disclosures
  • Financial instruments disclosures

Dr Wayne Bartlett specialises in public sector financial management and budgeting and has worked as a consultant and lecturer throughout the world. After 7 years in the NHS in the UK, he joined the Home Office as Head of Accountancy Advice. He has worked closely with a number of Supreme Audit Institutions and has become an expert of the implementation of international accounting standards.

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