The course demonstrates accounting for financial instruments in accordance with International Financial Reporting Standard 9. A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. IFRS 9 replaces the old IAS 39 Financial Instruments. IFRS 9 introduces a logical approach for the classification of financial assets, which is driven by cash-flow characteristics and the business model in which an asset is held.

This single, principle-based approach replaces existing rule-based requirements that are generally considered to be complex and difficult to apply. The new approach also results in a single impairment model being applied to all financial instruments, thereby removing a source of complexity associated with previous accounting requirements. IFRS 9 is effective for annual periods beginning on or after 1 January 2018 with early application permitted. This course introduces participants to accounting for financial assets, financial liabilities, equity, impairment of financial assets and derivatives.

Course Key Concepts: Financial instrument, Financial asset, Financial liability, Equity, FVTPL, FVTOCI, Amortized cost, Impairment, Derivatives, Expected credit loss.