This course is designed to teach participants the main provisions of the IASB standards over financial instruments and provide participants with the necessary knowledge to apply those standards to their own financial instrument fact situations.

The course will cover IAS 32 which provides guidance for presenting financial instruments as liabilities or equity and the classification of related interest, dividends, losses and gains. This course will also cover its provisions over offsetting of financial assets and liabilities.

IFRS 9 will form a significant component of the course as it contains the guidance over financial instrument classification, measurement and impairment and their timing of recognition. We will cover many provisions of IFRS 9 that can be difficult to apply and/or require significant judgment.

The course will also cover IFRS 7 disclosure provisions which are meant to show the nature and significance of a company's financial instrument holdings and their performance, but also their associated risks and how the company manages those risks.

This course will assist participants by providing them with the practical knowledge to understand the concepts and provisions of these financial instruments standards and how to apply them to their portfolio of financial instruments. These standard apply to all companies and they often requires certain planning, systems and processes to apply them effectively. The course will cover real-world examples and case studies and will also cover recent standard developments associated with financial instruments.

Topics Include:

• Overview and scope
• Classification, reclassification and presentation
• Initial recognition, subsequent measurement, de-recognition and offsetting
• Impairment
• Disclosures
• Future developments
• Derivatives and embedded derivatives
• Hedging

NOTE: No updates or changes were made to the 2024 version of this course. If you completed the course in 2023, please be advised the 2024 course material has not changed. If you have any questions, please contact pdevents@cpaontario.ca.

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By the end of this course, participants will learn the following about financial instruments:

• The three classification categories for financial assets and related criteria;
• Key factors to consider in assessing whether an instrument or its components represent an equity or liability instrument (or derivative) and common areas where this assessment occurs;
• The subsequent measurement models of financial assets and liabilities;
• Key concepts, elections and application of the IFRS 9 expected credit loss impairment model;
• Presentation and disclosure requirements and examples of such disclosures;
• New hedge accounting model under IFRS 9 and how to identify certain derivative and embedded derivatives; and
• Recent developments.