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Financial instruments are central to business finance, affecting investments, funding, and reporting. This course teaches you to identify, measure, classify, and derecognise assets and liabilities under IFRS. With clear explanations and real-world examples, you will learn to navigate complex accounting requirements, enhance the accuracy of financial statements, and ensure compliance with international standards.

Learning Objectives

• Define and identify financial instruments, financial assets, financial liabilities, and equity instruments in line with IAS 32
• Apply IFRS 9 classification rules to determine the correct measurement category for different financial assets and liabilities
• Interpret and implement the business model assessment and the SPPI (Solely Payments of Principal and Interest) test for debt instruments
• Measure financial assets at amortised cost and fair value, including the calculation of interest income using the effective interest method
• Account for financial liabilities, distinguishing them from equity instruments and correctly treating compound instruments such as convertible bonds
• Apply derecognition principles to determine when and how to remove financial instruments from the statement of financial position
• Enhance compliance and reporting accuracy by applying IFRS requirements to real-world accounting scenarios involving financial instruments