Financial instruments are pervasive accross all reporting entities. Examples of financial instruments are cash, investments which can include equity investments or bonds, trade receivables and derivatives. 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, in short terms explains financial instruments' derecognition and modification criteria and outlines also the main aspects of impairment calculation, that is explains what expected credit loss model is about. The course uses practical examples to help you understand the essentials of IFRS 9 standard and interim tests to enhance understanding.
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.