Page 9 - Finac1 Test 2 slides

FINANCIAL INSTRUMENTS

Outcomes

• Identify and account for financial assets and liabilities.

• Measure financial assets and liabilities on initial recognition and
subsequently.

• Understand when a reclassification may be made and to reclassify
financial assets between different categories.

• Account for the impairment of financial assets.

• Understand when to derecognise financial assets and liabilities.

• Distinguish between equity and liabilities.

• Account for share buy-backs and treasury shares.

• Understand when it is allowed to off-set financial assets and liabilities.

• Identify and account for derivatives and embedded derivatives.

• Disclose financial instruments in the financial statements.

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