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IFRS:Financial Instruments

The Hardest
IFRS Topic

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Financial instruments represent the most intimidating and confusing area of IFRS and therefore they deserve your special attention.

There are as much as 5 standards related to financial instruments and really, you can easily get lost in the dark.

To bring a bit of light into this over-complicated area, I have prepared the following resources for you:

I. Read & watch IFRS summaries related to financial instruments (videos included)

1) Summary of IAS 39 Financial Instruments: Recognition and Measurement

IAS 39 is older standard dealing with recognition and measurement of financial instruments and it will be replaced by IFRS 9 in the future. However, as it will apply probably until 2018, it’s important to skim through.

2) Summary of IFRS 9 Financial Instruments

IFRS 9 is the newer standard and in the future it will be the only standard dealing with recognition, measurement and other issues related to financial instruments. Its rules are heavily based on older IAS 39, but they are a bit simplified.

3) Summary of IFRS 13 Fair Value Measurement

IFRS 13 sets the framework and guidelines for determining the fair value of any asset or liability – not only the financial ones. However, as most financial instruments are carried at fair value, you should be aware of basic fair value concepts and methods.

II. Watch the free chapter from my premium package the IFRS Kit

Besides other standards, the IFRS Kit contains more than 5 hours of video dedicated to financial instruments – so that would really make you a professional!

But in these resources I tried to make everything easy for you, so here you can learn about the initial recognition and derecognition of financial assets in line with IFRS 9 / IAS 39.

We’ll solve a case study together, too! Please watch the lecture here:

Download the case study HERE.

III. Dig a bit deeper in the IFRS related to financial instruments

1) IAS 39 versus IFRS 9

As I listed above, there are 2 standards dealing with the same issues: IAS 39 (the older one) and IFRS 9 (the newer one). What are the differences? And which one should you apply?

2) Hedge accounting: IAS 39 versus IFRS 9

Although I compared these 2 standards in the article above, hedge accounting is a very specific and difficult area. In November 2013, the new hedge accounting rules were added to IFRS 9, so learn about them here.

3) How to account for compound financial instruments

Video with a case study included! If you have ever needed to deal with convertible bonds, mandatorily redeemable shares or anything similar, then you know what I’m talking about! It’s neither a pure equity, nor a pure financial liability – it’s a mixture of both! Learn how to deal with them here.

IV. Free course: Introduction to financial instruments in line with IFRS

Although I cover financial instruments in a great detail in my premium training package the IFRS Kit, I have created the free introductory course related to financial instruments.

You’ll learn what standards deal with certain aspects of financial instruments, their definitions and distinctions between them (it’s not so easy as it looks) and we’ll solve a case study together. You can take a test after you complete the course.

It is hosted by my partnering organization The Professional Training Academy and you need to register in order to get access (it’s free).

Access the free course HERE.

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