ICAN Virtual Extended Financial Reporting Session on Financial Instruments - For May 2025 Diet

Описание: Session Topics

1. Introduction to Financial Instruments (IFRS 9): A high-level overview of the classification, recognition, and measurement principles under IFRS 9.

2. Practical Application of the Effective Interest Method (EIM): Step-by-step demonstration of how to compute the Effective Interest Rate (EIR) using the Amortised Cost Measurement model.

3. Impairment of Financial Assets – Expected Credit Loss (ECL) Model
a) General Approach: In-depth walkthrough of the 3-stage impairment model for assessing credit risk.
b) Simplified Approach: Use of Provision Matrix for trade receivables and lease receivables without significant financing components.

4. Reclassification of Financial Instruments: Conditions and implications of reclassifying financial assets or liabilities under IFRS 9.

5. Derecognition of Financial Instruments: Criteria for removing financial assets or liabilities from the entity’s statement of financial position.

6. Accounting for Embedded Derivatives: Identification, separation, and accounting treatment of embedded derivatives in hybrid contracts.

7. Hedge Accounting (IFRS 9 Optional Application): Accounting for risk mitigation strategies using derivative contracts and other qualifying instruments, including:
a) Fair Value Hedges
b) Cash Flow Hedges
c) Hedges of Net Investment in Foreign Operations

8. IFRS 7 – Disclosure Requirements: Comprehensive disclosure framework for financial instruments, including risk management and exposure reporting.

9. IFRS 13 – Fair Value Measurement Framework
a) Non-Financial Assets: Application of the Highest and Best Use (HBU) principle
b) Fair Value Hierarchy: Classification of inputs into Levels 1, 2, and 3 for assets and liabilities
c) Valuation Techniques: Application of the following approaches, particularly at Levels 2 and 3:
i) Market Approach
ii) Income Approach
iii) Cost Approach/Adjusted Net Asset Value
d) Most Advantageous Market (MAM): Determination methodology for financial instruments where no principal market exists but multiple active markets are accessible.