IFRS 9 Financial instruments – Classification and measurement

Content of the training

• Definitions in the area of financial instruments
• Basic measurement method explained:
  • Amortised cost and effective interest method including calculation and booking examples
  • Fair value with alternatives of revaluation through profit or loss and other comprehensive income including booking examples
• Classification model for financial assets:
  • Cash flow criterion (SPPI – solely payments of principal and interest)
  • Special requirements for non-recourse assets and securitisation investments
  • Business model criterion – consideration of the intention to hold or sell the asset
  • Option to measure investments in equity instruments at fair value through OCI
• Classification model for financial liabilities
• Initial recognition and measurement of financial instruments
• Settlement and trade day accounting alternatives for purchases and sales of financial assets
• Derecognition of financial assets, repo transactions and security lendings 
• Derecognition of financial liabilities
• Requirements for derivatives including embedded derivatives
• Disclosure requirements under IFRS 9 in the area of classification and measurement 
• Practical implementation issues

The training is supported by numerous examples.

After completing the training the participants will understand:

• position and importance of financial instruments in the balance sheets of entities
• measurement methods  - amortised cost, fair value through PL or through OCI – related bookings, impacts on the balance sheet and income statement
• principles based on which the financial assets and liabilities are classified and respective measurement methods are assigned to them
• requirements for derecognition of financial assets and liabilities and how to avoid unnecessary complexities when it comes to transfers of financial assets 
• principles for accounting for derivatives under IFRS including embedded derivatives
• disclosure requirements for financial instruments  

Target audience

• At banks and other financial institutions mainly employees at following departments: accounting, reporting, risk management, treasury, ALM, back office, middle office, controlling, internal audit, financial analyses of IFRS statements of customers 
• At non-financial companies mainly employees at following departments: accounting, reporting, risk management, controlling, cash management, internal audit
• Audit firms 
• Supervisors and enforcers in the area of financial institutions accounting