Accounting for Financial Instruments

Financial Management and Accounting October 25, 2025
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Introduction

This advanced course provides comprehensive coverage of accounting for financial instruments under IFRS 9 and related standards. Participants will master the classification, measurement, impairment, and hedge accounting requirements for various financial assets and liabilities. The program covers complex topics including expected credit loss models, fair value measurement, and derivative accounting in detail. Through practical examples and case studies, attendees will develop the expertise to account for sophisticated financial instruments and implement robust financial risk management reporting.

Objectives

Key learning objectives for this course include:

  • Master classification and measurement of financial instruments under IFRS 9
  • Apply expected credit loss model for impairment assessment
  • Understand and implement hedge accounting requirements
  • Account for derivatives and embedded derivatives
  • Apply fair value measurement principles to financial instruments
  • Understand derecognition criteria for financial assets and liabilities
  • Prepare disclosures for financial instruments
  • Manage transition from previous accounting standards
  • Address complex financial instrument scenarios

Target Audience

  • Financial Instrument Accountants
  • Treasury Accountants
  • Financial Reporting Managers
  • Risk Management Professionals
  • Investment Accountants
  • Banking and Financial Services Accountants
  • Corporate Finance Professionals
  • Public Accounting Specialists

Methodology

  • Case studies of financial instrument accounting
  • Classification and measurement exercises
  • Expected credit loss calculations
  • Hedge accounting scenario analysis
  • Derivative accounting simulations
  • Group discussions on complex instruments
  • Individual research projects

Personal Impact

  • Enhanced technical accounting expertise
  • Improved financial instrument analysis skills
  • Stronger risk assessment capabilities
  • Increased confidence in complex accounting
  • Better understanding of financial markets
  • Professional growth in specialized accounting

Organizational Impact

  • Improved accuracy in financial instrument reporting
  • Enhanced risk management and disclosure
  • Better compliance with evolving standards
  • Reduced accounting errors and restatements
  • Stronger investor confidence in financial reporting
  • Improved treasury and risk management alignment

Course Outline

Financial Instruments Framework

Basic Concepts
  • Financial instrument definition and scope
  • Financial asset and liability categories
  • IFRS 9 overview and transition
  • Interaction with other standards
Recognition and Derecognition
  • Initial recognition criteria
  • Derecognition of financial assets
  • Derecognition of financial liabilities
  • Continuing involvement assessment

Classification and Measurement

Classification Principles
  • Business model assessment
  • Contractual cash flow characteristics
  • Amortized cost classification
  • Fair value through other comprehensive income
Measurement Approaches
  • Fair value through profit or loss
  • Amortized cost calculation
  • Fair value measurement techniques
  • Reclassification requirements

Impairment Accounting

Expected Credit Loss Model
  • Three-stage impairment approach
  • 12-month expected credit losses
  • Lifetime expected credit losses
  • Significant increase in credit risk
Implementation Guidance
  • Simplified approach for trade receivables
  • Purchased or originated credit-impaired assets
  • Credit risk assessment methodologies
  • Probability-weighted outcome measurement

Hedge Accounting

Hedge Accounting Principles
  • Hedge accounting eligibility criteria
  • Risk component designation
  • Effectiveness assessment methods
  • Documentation requirements
Hedge Types
  • Fair value hedges accounting
  • Cash flow hedges accounting
  • Net investment hedges
  • Hedge of groups and portfolios

Derivatives and Embedded Features

Derivative Accounting
  • Derivative definition and characteristics
  • Embedded derivative separation
  • Hybrid instrument accounting
  • Option and forward contract accounting
Complex Instruments
  • Convertible debt accounting
  • Preference share treatment
  • Structured products accounting
  • Credit derivative instruments

Disclosures and Presentation

Presentation Requirements
  • Balance sheet presentation
  • Income statement presentation
  • Offsetting financial assets and liabilities
  • Compound financial instrument presentation
Disclosure Framework
  • Classification and measurement disclosures
  • Impairment disclosures
  • Hedge accounting disclosures
  • Risk management disclosures

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