ACC 620: Accounting for Financial Instruments and Financial Institutions
Contents
The course addresses in-depth the accounting for financial instruments and by financial institutions under IFRS as well as related conceptual issues currently discussed by standard setters and bank regulators. It covers the definition of financial instruments, their classification, initial and subsequent measurement, impairment, derecognition, as well as their accounting in the context of hedging transactions. We also discuss relevant notes disclosures in example banks’ financial statements and links to capital regulation.
Learning outcomes
The course aims at developing the skills to understand, apply, analyze and critically evaluate accounting standards in the complex field of accounting for financial instruments and financial institutions. Students will get an in-depth understanding of the current IFRS accounting rules, in particular the comprehensive IFRS 9, and understand the underlying conceptual discussions surrounding their development. Overall, students will gain a deep and profound understanding of these advanced topics of financial accounting.
Necessary prerequisites
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Recommended prerequisites
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| Forms of teaching and learning | Contact hours | Independent study time |
|---|---|---|
| Lecture | 2 SWS | 8 SWS |
| Exercise class | 2 SWS | 5 SWS |
| ECTS credits | 6 |
| Graded | yes |
| Workload | 180h |
| Language | English |
| Form of assessment | Written exam (90 min) |
| Restricted admission | no |
| Further information | – |
Examiner Performing lecturer |  | Prof. Dr. Holger Daske Prof. Dr. Holger Daske |
| Frequency of offering | Spring semester |
| Duration of module | 1 semester |
| Range of application | M.Sc. MMM, M.Sc. WiPäd, M.Sc. VWL, M.Sc. Wirt. Inf., LL.M. |
| Preliminary course work | – |
| Program-specific Competency Goals | CG 1 |
| Literature | Ernst & Young (2020). International GAAP 2020: Generally Accepted Accounting Practice Under International Financial Reporting Standards. Chichester. |
| Course outline | Introduction Importance and Issues Development of Accounting Standards for Financial Instruments Relevant Standards and Effective Dates BasicsDefinitions and Scope Definitions Scope of IFRS 9 Measurement of Financial Instruments Fundamental Measurement Conceptions Accounting Measurement Conceptions Loan Loss Provisioning Recognition & Measurement of Financial InstrumentsClassification IAS 39 Classification Rules IFRS 9 Classification Rules Reclassification Rules Discussion Initial Recognition & Measurement Initial Recognition Initial Measurement Regular Subsequent Measurement Subsequent measurement at FVTPL Subsequent measurement at FVOCI Subsequent measurement at amortised cost Special cases Disclosure Impairments of Financial Assets IAS 39 impairment rules IFRS 9 impairment rules Derecognition Issues Derecognition Criteria for Financial Assets Accounting Treatment of Asset Transfers Derecognition Criteria for Financial Liabilities Hedge Accounting Risk Management in Practice Issues when Accounting for Hedging Relationships Hedge Accounting according to IFRS 9 Risk Conceptions Types of hedging relationships Qualifying criteria Fair Value Hedge Accounting Cash Flow Hedge Accounting Disclosure Hedge Accounting according to the Full Fair Value Model |