Course Overview

Financial reporting today goes beyond mere compliance—it’s about building credibility, ensuring clarity, and inspiring confidence.

The IFRS 9 Financial Instruments course by Transformentors Academy equips finance professionals with the expertise to interpret, apply, and communicate complex accounting standards with accuracy and confidence.

Whether you are classifying financial assets, estimating expected credit losses, or developing hedge strategies, IFRS 9 has fundamentally reshaped how financial instruments are reported and analyzed. This intensive five-day programme moves beyond theory, offering a step-by-step learning experience through real-world examples, interactive financial modelling, and practical case studies based on global practices.

Delivered by experienced trainers with backgrounds in Big 4 firms and industry, the course helps you understand not just the technical requirements of the standard, but also its broader impact on transparency, investor trust, and strategic financial decision-making.

By the end of the programme, you will be fully prepared to apply IFRS 9 with confidence—from classification and measurement to impairment and hedge accounting—ensuring compliance while enhancing the quality and insight of your financial reporting.

Agenda

Day — 1 Introduction to IFRS Standards on Financial Instruments

• Overview of key IASB standards governing financial instruments, including:
  • IAS 32 – Financial Instruments: Presentation
  • IAS 39 – Financial Instruments: Recognition and Measurement
  • IFRS 9 – Financial Instruments
  • IFRS 7 – Financial Instruments: Disclosure
  • Relevant IFRIC interpretations
• Understanding the definition and classification of financial instruments, including:
  • Financial assets
  • Financial liabilities
  • Equity instruments
• Examining the criteria used to distinguish between debt and equity instruments
• Understanding the accounting treatment for interest, dividends, gains, and losses
• Explaining offsetting principles and disclosure requirements under IAS 32
• Exploring the structure of IFRS 9, including:
  • Classification and Measurement
  • Impairment
  • Hedge Accounting
• Exercise: Analyze a set of financial instruments and determine whether they meet the required definitions and classifications

Day — 2 Classification and Measurement of Financial Assets and Liabilities

• Understanding how financial assets and liabilities are classified under IFRS 9, including:
  • Amortised Cost
  • Fair Value Through Profit or Loss (FVTPL)
  • Fair Value Through Other Comprehensive Income (FVOCI)
• Explaining the role of the business model assessment and the SPPI (Solely Payments of Principal and Interest) test in determining classification
• Examining the principles of initial recognition for financial assets and liabilities
• Exploring subsequent measurement approaches in line with IFRS 9 and IFRS 13
• Defining derivatives and distinguishing them from standard (non-derivative) financial contracts
• Understanding the accounting treatment of embedded derivatives and financial guarantee contracts
• Exercise: Classify and measure a portfolio of debt and equity investments based on IFRS requirements

Day — 3 Derecognition and Reclassification of Financial Assets and Liabilities

• Understanding the key principles for derecognising financial assets, including the transfer of risks and rewards and the assessment of control
• Analyzing common derecognition scenarios and their accounting treatment, such as:
  • Factoring
  • Securitisation
  • Repurchase agreements
• Evaluating the impact of deep in-the-money and deep out-of-the-money options on derecognition decisions
• Examining the rules for derecognising financial liabilities, including:
  • Derecognition arising from modifications and restructuring
  • Derecognition due to the extinguishment of liabilities
• Understanding the concepts of continuing involvement and retained servicing in financial asset transfers
• Identifying the conditions under which financial assets and liabilities can be reclassified
• Exploring the accounting treatment for reclassification, including its prospective application
• Exercise: Apply derecognition and reclassification principles to real-world financial scenarios

Day — 4 Impairment of Financial Assets

• Understanding the Expected Credit Loss (ECL) model introduced under IFRS 9
• Exploring the general approach for recognising credit losses across three stages:
  • Stage 1: Performing assets
  • Stage 2: Assets with a significant increase in credit risk
  • Stage 3: Credit-impaired assets
• Differentiating between 12-month expected credit losses and lifetime expected credit losses
• Examining how the general impairment approach is applied across different industries
• Understanding the simplified approach for trade receivables and lease receivables
• Learning how to calculate impairment and accurately measure expected credit losses
• Exercise: Evaluate a portfolio of receivables, compute expected credit losses, and record the appropriate impairment journal entries

Day — 5 Hedge Accounting and Disclosures

• Introducing the objectives and requirements of hedge accounting under IFRS 9
• Understanding the three main types of hedging relationships:
  • Fair value hedges
  • Cash flow hedges
  • Hedges of net investments in foreign operations
• Examining the qualifying criteria that must be met to apply hedge accounting
• Identifying when credit exposures can be designated at Fair Value Through Profit or Loss (FVTPL)
• Exploring the treatment of hedging costs that are excluded from designation, including:
  • Time value of options
  • Forward elements of forward contracts
  • Currency basis spreads
• Understanding hedge effectiveness requirements and the common factors that influence effectiveness
• Interpreting IFRS 7 disclosure requirements related to financial instruments and hedge accounting
• Exercise: Develop a hedge strategy to manage foreign currency or interest rate risk

Learning Outcomes

By attending this IFRS 9 Financial Instruments training course, you will be able to:

• Develop a strong understanding of the regulatory framework governing financial instruments, including IAS 32, IFRS 7, IFRS 9, IFRS 13, and relevant IFRIC interpretations
• Accurately identify, classify, and measure financial assets and liabilities using the business model assessment and SPPI criteria under IFRS 9
• Analyze complex financial transactions by applying derecognition principles to both financial assets and liabilities
• Apply reclassification requirements when business models change, ensuring appropriate prospective accounting treatment
• Implement the Expected Credit Loss (ECL) model by recognising and measuring both 12-month and lifetime ECLs, assessing credit risk stages, and applying general and simplified impairment approaches
• Design effective hedge strategies by understanding hedge accounting requirements, evaluating hedge effectiveness, and accounting for hedging costs
• Interpret and prepare IFRS 7 disclosures related to classification, measurement, impairment, and hedge accounting

Who Should Attend

This programme is ideally suited for:

• Finance managers, financial controllers, and accountants involved in the preparation or review of financial statements
• Auditors, analysts, and consultants looking to deepen their expertise in IFRS 9 requirements
• Treasury and risk management professionals working with derivatives, hedging strategies, or investment instruments
• Regulatory and compliance professionals responsible for overseeing financial reporting standards
• Professionals in banking, insurance, or corporate finance who need practical knowledge of applying IFRS 9