Accounting for Financial Instruments under FRS 102 – A Practical Guide

Speaker:   |  CPD Hours: 6.0

OBJECTIVES

FRS 102 was adopted in the UK in 2015. This course provides an introduction to the principles behind the accounting entries for financial instruments under the standard. The course involves practical application of the accounting principles with a comprehensive case study involving the accounting entries for the financial instruments.

CONTENT

FRS 102 – Overview of impact on financial reporting in the UK

• What are the key principles and issues in accounting for financial instruments?

Principles of Marking to Market & Fair Value accounting/Hedge accounting/Amortised cost

• Step by step approach to accounting for financial instruments:
  • How to Identify & classify financial instruments on the balance sheet into the 2 categories of
  • – Basic and Other Instruments
  • What are the accounting entries for the initial & subsequent recording of the financial instruments including amortised cost calculations and accounting entries
  • What are the accounting entries for period end adjustments for balance sheet reporting

• Hedge accounting – what are the principles behind when hedge accounting can be used
• Discussion on whether or not companies will choose to adopt hedge accounting.
• How the financial instruments are classified under the hedge accounting framework. What are the accounting entries?

Comprehensive case study putting into practice the learning points from the course, in which delegates ascertain the classification and accounting entries for a range of financial products, covering the initial recording, period end adjustments and maturity.

WHO SHOULD ATTEND

Anyone who is involved in accounting and needs to understand the principles of accounting for financial instruments under FRS 102

Delegates will need prior knowledge of basic double-entry book-keeping so should have either an accounting background or have attended one of our Accounting Principles courses such as Accounting Principles 1 – Posting Basic Transactions. A basic understanding of the products would also be useful – Corporate Treasury in Practice might be helpful).