Page 4 - Finac 1 - Topic 2 - 2. Financial Instruments

FINANCIAL INSTRUMENTS

Introduction

• Financial instruments include a wide variety of

instruments, including shares, debentures,

receivables, payables and derivative instruments (for

example share options, forward exchange contracts

and interest rate swaps).

• The accounting treatment and disclosure of financial

instruments are prescribed in three standards:

• IAS 32 Financial instruments: Presentation

• IFRS 9 Financial instruments

• IFRS 7 Financial instruments: Disclosures

• The IASB has completed its project on IFRS 9 which has

replaced the entire IAS 39. Impairment and hedging are now

also incorporated into IFRS 9.

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