Overview

IPSAS 41 Financial Instruments is a replacement standard for IPSAS 29 Financial Instruments: Recognition and Measurement. IPSAS 41 (effective from 1 January 2022) introduces a logical, more principles-based approach to classification and measurement of financial assets based on the business model and nature of cash flows. The new forward-looking impairment model requires earlier and timely recognition, and ongoing assessment of credit losses. The hedge accounting requirements are more principles-based and aligned to common risk management practices.

This two-day live, virtual or face to face course provides an in-depth coverage of IPSAS 41 along with a recap of IPSAS 29, to enable participants to assess the impact of adopting the new standard effective from 1 January 2022.  

Learning outcomes

To enable participants to obtain an in-depth understanding of the requirements of IPSAS 41 and its impact:

  • Classify and measure the financial assets according to the three categories defined in IPSAS 41
  • Analyse the impact of IPSAS 41 on the classification of financial assets in IPSAS 29, including embedded derivatives
  • Classify and measure the financial liabilities according to the two categories defined in IPSAS 41
  • Evaluate the principles of fair value measurement including additional guidance related to the public sector
  • Review the provisional accounting requirements in ED 69 in relation to public sector specific financial instruments
  • Apply the principles in relation to de-recognition of financial assets
  • Measure the impairment loss on loans and other financial assets under the expected credit loss model in IPSAS 41
  • Apply the hedge accounting model in IPSAS 41 and learn how it is aligned more closely to common risk management practices compared to IPSAS 29
  • Understand the IPSAS 41 transition requirements
  • Review the quantitative and qualitative disclosures for financial instruments required by IPSAS 30

Who should attend

The course is useful for those who are currently or in the future likely to be involved in accounting for financial instruments in the public sector:

  • Staff in accounting, finance and treasury teams
  • Board members and executives in public sector financial institutions
  • Internal and external auditors of IPSAS financial statements
  • Analysts and regulators in public sector financial institutions
  • IT and operations staff involved in finance transformation/change, or IPSAS adoption