Financial Instruments and IFRS 9

This specialized course provides a thorough understanding of accounting for financial instruments, one of the most complex areas in financial reporting. IFRS 9 Financial Instruments has fundamentally changed how organizations account for their financial assets, liabilities, and hedging activities.

You will begin with the classification and measurement of financial assets into three categories: amortized cost, fair value through other comprehensive income (FVOCI), and fair value through profit or loss (FVTPL). The business model assessment and contractual cash flow characteristics (SPPI) test are explained with practical examples to help you correctly classify financial instruments.

The expected credit loss (ECL) model for impairment is covered in depth. You will learn the general approach with its three-stage model, the simplified approach for trade receivables, and the credit-adjusted approach for purchased or originated credit-impaired assets. Practical calculation examples demonstrate how to measure 12-month and lifetime expected credit losses.

Hedge accounting under IFRS 9 is demystified with clear explanations of fair value hedges, cash flow hedges, and hedges of net investments in foreign operations. The course covers qualifying criteria, effectiveness testing, and the accounting entries for each type of hedge. Disclosure requirements under IFRS 7 are also covered to ensure complete compliance with reporting obligations.