New UK GAAP 2015: Application of FRS 100-102 in the UK

Chapter 8 Financial instruments

1 Introduction

2 Key differences between Sections 11 and 12, previous UK GAAP and IFRS

   2.1 Key differences from UK GAAP (not applying FRS 26)

   2.2 Key differences from IFRS/UK GAAP (applying FRS 26)

3 Scope of Sections 11, 12 and 22

   3.1 Definitions

   3.2 Scope

4 Classification and measurement

   4.1 ‘Basic’ financial instruments

       4.1.1 Basic debt instruments

       4.1.2 Embedded derivatives

       4.1.3 Basic equity instruments

   4.2 Non-basic financial instruments

       4.2.1 Financial instruments not permitted to be measured at fair value through profit or loss by UK Company Law

   4.3 Initial recognition and measurement

   4.4 Subsequent measurement

       4.4.1 Amortised cost

       4.4.2 Exceptions to amortised cost measurement

1. 4.4.2.A Undiscounted cash flows
2. 4.4.2.B The fair value option

       4.4.3 Loan commitments

       4.4.4 Equity securities

       4.4.5 Fair values

5 Impairment of financial assets measured at cost or amortised cost

   5.1 Introduction

   5.2 Recognition of impairment

   5.3 Measurement and reversal of impairment

6 Derecognition

   6.1 Introduction

   6.2 Derecognition of financial assets

   6.3 Analysis of the derecognition requirements for financial assets

   6.4 Comparison with FRS 26 and FRS 5

   6.5 Accounting for collateral

   6.6 Derecognition of financial liabilities

   6.7 Offsetting of financial instruments

7 Hedge accounting

   7.1 Introduction

       7.1.1 What is hedge accounting?