CFM21410 - Accounting for corporate finance: classification and measurement: accounting policy overview

The following summarises the accounting policy requirements and choices available for the classification and measurement of financial instruments that are available to companies applying the different accounting frameworks outlined at CFM20010 . Also included are links to the sections covering the classification and measurement requirements under each of the policy requirements and choices.

The key concepts and presentational requirements are similar across the different accounting frameworks as outlined at CFM21000+ and .

IFRS & FRS 101 users

For those entities that are mandated to use IFRS, have voluntarily adopted IFRS or have adopted FRS 101 the following accounting standards are relevant for the classification and measurement of financial instruments:

  • For accounting periods beginning before 1 January 2018 - IAS 39 (바카라 사이트˜Financial instruments: recognition and measurement바카라 사이트™) the version prior to the amendments made for IFRS 9 (CFM21500+);
  • For accounting periods beginning on or after 1 January 2018 - IFRS 9 (바카라 사이트˜Financial instruments바카라 사이트™) and, potentially, for hedge accounting requirements only, IAS 39 as amended for IFRS 9. ().

FRS 102 users

Those companies that use FRS 102 have an accounting policy choice for which accounting standard to apply for the classification and measurement of financial instruments. The available choices are as follows:

  • Sections 11 and 12 of FRS 102 (CFM23000+);
  • IAS 39 (바카라 사이트˜Financial Instruments: recognition and measurement바카라 사이트™) the version prior to the amendments for IFRS 9 (CFM21500+); or
  • IFRS 9 (바카라 사이트˜Financial Instruments바카라 사이트™) (CFM21800+).

FRS 105 users

FRS 105 users have to apply the classification and measurement requirements of Section 9 of FRS 105 (CFM23092+).

Old UK GAAP

Old UK GAAP has now been withdrawn for all companies. For the classification and measurement of financial instruments under Old UK GAAP a company applied one of the following (CFM20035):

  • FRS 26 (Financial Instruments: recognition and measurement). The classification and measurement requirements are aligned with IAS 39 (CFM21500+); or
  • FRS 4 (바카라 사이트˜Capital Instruments바카라 사이트™), SSAP 20 (바카라 사이트˜Foreign Currency Translation바카라 사이트™), FRS 5 (바카라 사이트˜Reporting the Substance of Transactions바카라 사이트™) and FRS 18 (바카라 사이트˜Accounting Policies바카라 사이트™) (CFM22000+).

Where a company had listed debt or equity, or where the company adopted fair value accounting, it was obliged to apply FRS 26.