Financial instruments

Abstract

This chapter is emphasizing the main concepts, principles and techniques related to financial instruments. Various topics are highlighted and explained, starting with the importance and scope of this sophisticated and complex subject and the new IFRS 7 and 9’s implementation, complementary and more extensive as compared to the “older” IAS 32. This chapter highlights the most important areas of financial instruments, in connection to their definitions, classification, recognition valuation and impairment. A special place is allocated to hedge accounting and specific cases and examples are enclosed. Extensive examples and analysis are provided, and the financial statements’ effects are disclosed, as well. The end of this chapter provides a five summary questions, alongside with their brief answers, as a conclusion to the subject.