Module 2: Financial Instruments
Recognition and Measurement (IAS39)

Date: TBA
Time: 9:00am - 5:00pm
CPE/CPD: 14 hrs

About the seminar (Module 2)
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Financial instruments affect many line items on the statement of financial positions in the form of financial assets, financial liabilities and equity instruments. The inclusion or exclusion of these items will have direct impacts on the analysis of financial statements and ratio computations as such, can significantly affect users in making economic decision.

Recognition of a financial instrument addresses the issue of on and off balance sheet contracts while measurement deals with the amount to be recorded in the balance sheet. The technical requirements in IAS 39 are complex and required considerable judgement to be made in practice. The core measurement basis for IAS 39 is fair value therefore it is essential to have sound knowledge on the rules in determining fair value and the accounting entries. The seminar also examines future development in the accounting for financial instruments in particular IFRS 9 Financial Instruments.

This seminar uses easy to understand illustrations to explain the technical requirements of IAS 39. These illustrations enhance the participants’ understanding of the complex rules of recognising and measuring of financial assets and financial liabilities. Participants would gain an understanding on the complicated bookkeeping entries for financial instruments in practice.

Course Outline
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• Scope and definition of terms
  
  
• Initial recognition of financial assets and financial liabilities
  
  
• Accounting for regular way purchase or sale of financial assets
  
  
• Derecognition
  
  
  • Rules on derecognising financial assets and financial liabilities
    
    
  • Transfers that qualify for derecognition
    
    
  • Transfer that do not qualify for derecognition
    
    
• Initial and subsequent measurement of financial liability
  
  
• Classification and measurement (IFRS 9 Financial Instruments)
  
  
• Accounting for gains and loss of financial assets and financial liabilities
  
  
• Fair value measurement techniques:
  
  
  • Accounting for day one gain or loss
    
    
  • Accounting for available for sale financial assets
  
  
• Amortised costs using effective interest rate method
  
  
• What is the meaning of effective interest rate
  
  
• How to find effective interest rate
  
  
• Computational format for amortised costs
  
  
• Accounting for amortised cost using effective interest rate method
  
  
• Fair value consideration for financial instruments
  
  
• Applying objective evidence of impairment in practice for
  
  
  • Uncollectibility of financial assets
    
    
  • Equity investment
    
    
• Impairment and reversal of impairment on financial assets
  
  

  • Financial assets carried at amortised cost
    
    
  • Financial assets carried at cost
    
    
  • Available for sale financial assets
    
    

• Accounting for financial guarantee contracts
  
  
• Accounting for inter group corporate guarantee
  
  
• Accounting for derivatives: currency forward and future contracts
  
  
• Hedging:
  
  
  • What instruments qualify as hedge instruments
    
    
  • Designation of hedging instruments
    
    
  • What are qualifying hedge items
    
    
  • Designation of financial items as hedge items
    
    
• Introduction to hedge accounting
  
  
  • Fair value hedges for receivables and payables
    
    
  • Cash flow hedges for future anticipated cash flows
    
    
  • Basis adjustments for hedge of forecast transaction to non-financial assets
    

Facilitator
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Danny, Tan Boon Wooi

Danny has over 25 years of working experience in public practice, commerce and industry. He was trained with a firm of Chartered Accountants in London where he worked for over 10 years in the audit and consultancy. He also held the positions of business development and business operation manager with two UK multinational companies based in London for 5 years. Danny also has two years of public practice experience in Malaysia in Between 1996 and 1997 where he was an audit manager with a firm of accountants.

He is currently the partner of a firm providing financial training and consulting for firms in public practice and industry. Danny specialises in International Financial Reporting Standards. He is an experienced speaker in financial reporting and financial statement analysis for several professional institutions and public listed companies in Malaysia and overseas.

Danny holds an Honours Degree in Economics (major in finance and investment) from Manchester Metropolitan University (UK), MBA from Heriot-Watt University (UK) and Master in Advance Business Practice from University of South Australia.

If you are having trouble registering online then you may download and fill out this registration form and fax it to (65) 65090292.