International GAAP 2021

Chapter 44Financial instruments: Introduction

• 1 STANDARDS APPLYING TO FINANCIAL INSTRUMENTS
• 2 IAS 32
• 3 IAS 39
• 4 IFRS 7
• 5 IFRS 9
• 6 STRUCTURE AND OBJECTIVES OF THE STANDARDS

Chapter 44Financial instruments: Introduction

1 STANDARDS APPLYING TO FINANCIAL INSTRUMENTS

The subject matter of this and the next ten chapters is the recognition, measurement, presentation and disclosure of financial instruments, the IASB's accounting requirements for which are regarded by many as some of the more difficult to understand. There are many likely reasons for this, including the fact that it is such a broad topic encompassing some of the more complex contracts entities enter into. In addition, the requirements have been subject to a process of almost continual change over the last twenty years or so and are dealt with in a number of different standards and other pronouncements.

The following are the standards which deal primarily with the accounting for financial instruments:

• IAS 32 – Financial Instruments: Presentation;
• IAS 39 – Financial Instruments: Recognition and Measurement;
• IFRS 7 – Financial Instruments: Disclosures; and
• IFRS 9 – Financial Instruments.

In addition a number of interpretations address the requirements of these standards, including:

• IFRIC 2 – Members’ Shares in Co-operative Entities and Similar Instruments;
• IFRIC 16 – Hedges of a Net Investment in a Foreign Operation; and
• IFRIC 19 – Extinguishing Financial Liabilities with Equity Instruments.

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