Free ACCA FR Financial Instruments (IFRS 9/IFRS 7) Study Gui...

Overview

This module covers financial instrument accounting under IFRS 9 and disclosure requirements under IFRS 7, including business model and SPPI tests, effective interest method, and expected credit loss models. Topics include amortised cost FVOCI FVTPL categories and risk disclosures.

1. Recognition and classification

• Business model and SPPI tests
• Asset categories: amortised cost, FVOCI, FVTPL
• Initial recognition and transaction costs

2. Subsequent measurement and derecognition

• Effective interest method and fair value changes
• Modifications and derecognition principles
• Equity instruments and OCI election

3. Impairment and disclosures

• Expected credit loss models (12-month vs lifetime)
• Simplified approach for trade receivables
• Risk and disclosure requirements (IFRS 7)