IFRS 9 — Financial Instruments
Modules of the standard
- Concepts57 publishedNormative and pedagogical mapping.
- Questions124 publishedTrue/false, quizzes, calculations, entries, mini-cases, judgment.
- Practical cases5 publishedProgressive cases, from beginner to expert.
- Workpapers4 publishedWorking papers with calculations and entries.
- Professional file1 publishedSimulation of a full engagement.
- Exams2 publishedSealed, versioned final exams.
- Explanations (lessons)16 publishedLesson explanations, chapter by chapter.
Practical cases
- Classification and initial measurement of an investment portfolio: business model, contractual cash flow test, equity election and transaction costsL1Beginner
- Loan at the effective interest rate and debt securities: amortised cost schedule with integral fees, FVOCI with recycling and reclassificationL2Intermediate
- Impairment of a group: provision matrix for trade receivables, stages 1 to 3 of loans and scenario-weighted lossL3Advanced
- Transfer of receivables and refinancing: derecognition decision tree, extinguishment of a debt and 10 % test on a modificationL3Advanced
- File of an industrial group: hybrid contracts and separation, modification of an asset, assets credit-impaired from origination, loan commitments and maximum exposure periodL4Expert
- File of a group: classification, measurement, impairment and derecognition of financial instruments (IFRS 9)L4Expert
Workpapers
- Classification decision for a financial asset: business model, contractual cash flow test, fair value option, equity election and initial measurement
- Amortised cost schedule at the effective interest rate: net initial amount, interest, cash flows, closing amount and comparison with fair value
- Impairment: stage of each instrument, significant increase in credit risk, expected loss by scenarios or by probability of default, provision matrix and reconciliation of the loss allowance
- Derecognition and modification: decision tree for a transferred asset, extinguishment of a liability and the 10 % test on a modification
Concepts by topic
Mapping texts (concept labels, objectives, paragraph summaries) are available in French only for now.
Scope of the standard
- Scope of IFRS 9 and main exclusionsCore3 questions
- Loan commitments inside or outside scopeImportant2 questions
- Contracts on non-financial items and own useAdvanced1 question
Defined terms
- Credit loss, expected credit loss and credit-impaired assetCore3 questions
- Held for tradingImportant2 questions
Initial recognition
- Initial recognition of a financial instrumentCore3 questions
- Regular way purchases and salesImportant2 questions
Derecognition
- Expiry or transfer of the rights to cash flowsCore3 questions
- Pass-through transfer arrangementsAdvanced1 question
- Transfer of risks and rewardsCore3 questions
- Retained control and continuing involvementAdvanced1 question
- Decision tree for derecognising an assetCore3 questions
- Gain or loss on derecognising an assetImportant2 questions
- Extinguishment of a financial liabilityCore3 questions
- Modification of a financial liability and the 10% testCore4 questions
Categories of financial assets
- The three categories of financial assetsCore3 questions
- Business model: collect, collect and sell, otherCore3 questions
- The contractual cash flow test (SPPI)Core3 questions
- Modified time value, prepayment and contingent featuresAdvanced1 question
- Non-recourse assets and contractually linked instrumentsSpecialised1 question
- Fair value option for assetsImportant2 questions
- The other comprehensive income election for equity instrumentsCore3 questions
Categories of financial liabilities
- Liabilities at amortised cost and exceptionsCore3 questions
- Fair value option for liabilitiesImportant2 questions
- Own credit risk of a designated liabilityImportant2 questions
Measurement
- Initial measurement and transaction costsCore3 questions
- Trade receivables at the transaction priceImportant2 questions
- Effective interest rate, fees and costsCore3 questions
- The amortised cost scheduleCore3 questions
- Modification of the cash flows of a financial assetAdvanced1 question
- Write-off of an uncollectable financial assetImportant2 questions
- Debt instruments at FVOCI and recyclingCore3 questions
- Gains and losses on assets at FVTPLImportant2 questions
Reclassification of instruments
- Reclassifying financial assetsCore3 questions
- No reclassification of financial liabilitiesImportant2 questions
Impairment: expected credit losses
- Instruments within the impairment modelImportant2 questions
- The general approach: three stagesCore3 questions
- Significant increase in credit riskCore3 questions
- The low credit risk simplificationImportant2 questions
- Credit-impaired assets and interest on the net amountCore4 questions
- Return to 12-month lossesImportant2 questions
- The simplified approachCore3 questions
- The provision matrixCore3 questions
- Measuring expected credit lossesCore3 questions
- Maximum period of exposureAdvanced1 question
- Purchased or originated credit-impaired assetsAdvanced1 question
- Modified assets and credit risk assessmentAdvanced1 question
- Loan commitments and financial guaranteesAdvanced1 question
- Presenting impairmentImportant2 questions
Embedded derivatives
- Hybrid contracts with a financial asset hostCore3 questions
- Separating an embedded derivativeImportant2 questions
- Designating the whole hybrid contractAdvanced1 question
Boundaries with other standards
- Boundary with IAS 32Specialised1 question
- Pointer to IFRS 7 disclosuresSpecialisedNo question
- Pointer to IFRS 13 fair valueSpecialised1 question
- Receivables and contract assets of IFRS 15Specialised1 question
- Lease receivables and lease liabilitiesSpecialised1 question