IFRS 9 Financial instruments for Banks


Financial instruments are pervasive accross all reporting entities and even more so in the financial services sector. Examples of financial instruments are cash and balances with central banks, investments which can include equity investments or bonds, loans and advances to customers, derivatives and repurchase aggrements. There are a number of standards that are relevant to financial instruments. IAS 32 deals with presentation, IFRS 9 with accounting and IFRS 7 with disclosures on financial instruments. Also relevant is IFRS 13 about fair value measurement. 

This course outlines the definitions of different types of financial instruments, the classification and measurement criteria for financial instruments, separately discussing the business model assessment and the SPPI (solely payments of principal and interest) test, the concept of fair value and amortised cost, financial instruments' derecognition and modification criteria, how to distinguish debt from equity and outlines also the main aspects of impairment calculation, that is explains what expected credit loss model is about. The course uses practical examples highlighting banking sector related issues to help you understand the essentials of IFRS 9 and IAS 32 standards and interim tests to enhance understanding. 

This course will enable you to:

  • review the relevant standards related to financial instruments
  • understand the concept of financial assets and financial liabilities
  • define different types of financial assets and financial liabilities focusing especially on banks
  • identify factors of business model assessment to be able to define appropriate business models for financial assets
  • understand the concept of fair value and amortised cost
  • make appropriate classification of financial instruments into one of the following categories: amortised cost, fair value through other comprehensive income and fair value through profit or loss
  • understand IFRS 9's 3 stage expected credit loss (ECL) model and define relevant pattern to calculate expected credit loss on financial assets

Further information:

  • Training hours: 70 minutes
  • Language: English

This e-learning course is part of an e-learning series designed by PwC Academy Hungary which aims to provide a comprehensive overview of the application of IFRS (IAS) standards to finance and accounting experts who are already familiar with fundamental (local) accounting and reporting processes.


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Ana Cetkovic

Ana Cetkovic

PwC's Academy Coordinator, PwC Montenegro

Tel: +382 67 643 304