UKAS Module 5: Accounting Standards with Financial Instruments

• Understand what a financial instrument is and identify examples of financial assets and financial liabilities under IAS 32.
• Understand the exclusions to the definition of financial instruments.
• Understand the distinction between financial liabilities and equity as per IAS 32.
• Understand the definition of (and examples of) a financial asset and a financial liability.
• Understand the rules for the initial recognition and subsequent measurement of financial assets and financial liabilities.
• Understand the rules relating to impairment (expected credit losses) of financial assets.
• Understand the derecognition rules relating to financial assets and financial liabilities.
• Understand the basic principles of hedge accounting and the three types of hedges under IFRS 9.
• Understand the financial instrument disclosures required under IFRS 7.
• Understand the three types of financial instrument risks identified in IFRS 7, namely: credit risk, liquidity risk and market risk.
• Understand the disclosures required in the notes to the financial statements for these three risk categories under IFRS 7.

This module is designed for accountants who are involved in reporting, particularly in the application of accounting standards. It is beneficial to financial accountants in both public practice or private companies wishing to increase or refresh their knowledge of current reporting standards.