IFRS Financial Instruments — Illustrated Masterclass

An illustrated, example-driven masterclass for the IFRS Financial Instruments certification. Four modules build deep, practical command of the hardest area of IFRS: classification and measurement under IFRS 9 (the business-model and SPPI tests, the three categories, the effective interest rate with a fully worked amortised-cost schedule and reclassification); impairment through the three-stage expected-credit-loss model (12-month versus lifetime ECL, significant increase in credit risk, POCI assets and a worked provision matrix for trade receivables); hedge accounting (fair value, cash flow and net investment hedges, their qualifying criteria and the journal mechanics of each, plus the cost of hedging); and presentation and disclosure (the IAS 32 liability-versus-equity split, a convertible-bond split worked in full, offsetting, derecognition and the 10% modification test, embedded derivatives and IFRS 7 risk disclosures). Rich with Mermaid diagrams, comparison tables, journal entries, worked numbers, self-checks and hands-on labs.

Key facts

• Course price: Free
• Field: Finance & Accounting
• Prepares for: IFRS Financial Instruments Masterclass
• 4 modules · 8 lessons · about 2 hours of lessons
• Self-paced, online, illustrated lessons

Course outline

1. Classification and Measurement (IFRS 9) — The business-model and SPPI tests that route a financial asset into amortised cost, FVOCI or FVTPL; the FVOCI equity election; the effective interest rate with a fully worked amortised-cost…
   • The Two Tests and the Three Categories
   • Amortised Cost, the Effective Interest Rate and Reclassification
2. Impairment: Expected Credit Losses (IFRS 9) — The three-stage general model, 12-month versus lifetime ECL, the significant-increase-in-credit-risk trigger, POCI assets, and the simplified approach with a fully worked provision matrix for trade…
   • The Three-Stage General Model
   • The Simplified Approach and a Provision Matrix (Lab)
3. Hedge Accounting (IFRS 9) — Fair value, cash flow and net investment hedges; the qualifying criteria, documentation and effectiveness requirements; the mechanics and journal entries of each hedge type worked; and the cost of…
   • Hedging Foundations: Types, Criteria and Effectiveness
   • Hedge Mechanics and Journals
4. Presentation, Liabilities vs Equity and Disclosure — IAS 32 liability-versus-equity classification and compound instruments (convertible-bond split worked); offsetting; IFRS 9 derecognition and the 10% modification test; embedded derivatives; and IFRS…
   • Liability vs Equity and Compound Instruments (IAS 32)
   • Derecognition, the 10% Test, Embedded Derivatives and IFRS 7