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.

Learning Objectives
  • Explore the accounting for debt instruments (financial liabilities).
  • Explore the accounting for equity instruments.
  • Explore the accounting for financial assets.
  • Explore the accounting for impairment of financial assets.
  • Explore the accounting for derivatives.
Last updated/reviewed: January 19, 2023
Prerequisites
Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to IFRS 9 - Financial Instruments4:12
  Definitions9:36
  Lecture Example 115:22
  Accounting for Debt Instrument Issued3:14
  Lecture Example 29:00
  Subsequent Accounting5:34
  Lecture Example 39:10
  Derecognition of Financial Liabilities9:30
  Debt and Equity Difference3:22
  Lecture Example 410:30
  Lecture Example 53:00
  Lecture Example 610:42
  Classification and Measurement Summary4:50
CONTINUOUS PLAY
  IFRS 9 - Financial Instruments1:38:02
SUPPORTING MATERIAL
  Slides: IFRS 9 - Financial InstrumentsPDF
  IFRS 9 - Financial Instruments Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam