O'Reilly logo

Interpretation and Application of UK GAAP: For Accounting Periods Commencing On or After 1 January 2015 by Steven Collings

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 17Financial Instruments

  1. Introduction
  2. Basic Financial Instruments
  3. Derecognition of basic financial instruments
  4. Other Financial Instrument Issues
  5. Hedge accounting
  6. Disclosure Requirements: Financial Instruments
  7. Disclosure Requirements: Hedge Accounting

Introduction

FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland splits the accounting for basic financial instruments into two sections: Section 11 Basic Financial Instruments and Section 12 Other Financial Instruments Issues. This chapter combines both sections but the first section will deal with basic financial instruments, whilst the latter section of the chapter looks at more complex financial instruments.

Accounting for financial instruments has become increasingly complex over the years, due in large part to the complicated nature of certain instruments (for example, derivatives) and the diversity in which businesses operate and raise finance. An increase in emphasis on fair value accounting has also given rise to accounting for financial instruments becoming inherently more complex.

Whilst Section 11 deals with ‘basic’ financial instruments, the contents of the section are not easy to read or digest as the wording is quite complex in many areas. For the purposes of Section 11, the term ‘basic’ refers to those financial instruments that satisfy the conditions outlined in paragraph 11.8; ‘other’ financial instruments are those that are remaining.

In the broadest terms, a financial ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required