Classification

In this lesson

1. 0:00 Financial instruments overview and agenda
2. 0:23 Classification and regulatory framework
3. 1:56 Definition and characteristics of financial instruments
4. 2:22 Financial assets explained
5. 3:10 Financial liabilities and equity instruments
6. 4:46 Examples of financial assets and liabilities
7. 5:48 Equity instruments and irredeemable preference shares

About this lesson

comparison between companies. You'll explore the three key IFRS standards governing financial instruments: IFRS 32 (presentation), IFRS 9 (classification and measurement), and IFRS 7 (disclosure). The lesson breaks down the core definitions and characteristics of financial assets (including cash, receivables, and equity investments), financial liabilities (borrowings, payables, and debentures), and equity instruments (ordinary and irredeemable preference shares). Through clear examples like trade receivables, loans, and issued debentures, you'll see how to identify which category each instrument belongs to—a foundation you'll build on as the module progresses into more complex applications. This classification framework matters because financial instruments are complex and varied. Without clear guidance, companies could account for them inconsistently, making performance comparison difficult and hiding gains or losses. By mastering these definitions now, you'll approach case studies and calculations with confidence, knowing exactly how to treat each instrument you encounter.

Duration: 6m