Financial instruments and their impact on financial statements

Financial instruments under IFRS are traditionally associated with difficulties of accounting and classification and with numerous disclosures in the financial statements. The entry into force of the financial instrument accounting standards (IFRS) has increased the number of questions related to the classification, measurement and impairment of financial instruments. The transitional provisions and the required disclosures related to applying the new standard may also cause difficulties.

Alongside the main theoretical provisions of the standards on accounting for financial investments, in this seminar we will examine the most likely adjustments to a company's statements resulting from applying IFRS, using a practical example. The seminar will consider the areas of reporting that have been or may be affected by the transition to IFRS and, accordingly, the presentation and disclosure in the statements of the effect of moving from one standard to another.

A structured approach to explaining the theory and practical examples will help seminar participants study the accounting for financial instruments under IFRS, broaden their existing knowledge and apply that knowledge in their own practice.

As a result the participant will learn:

• — the procedure for the SPPI test and its impact on the classification of financial instruments;
• — the measurement requirements on initial recognition and in subsequent accounting for each category;
• — the new impairment model;
• — accounting for changes in cash flows on debt instruments;
• — changes in the classification of financial instruments;
• — the practice of transitioning to the new standard on accounting for financial investments.