Syllabus B7. Financial instruments 1 9 / 19

• Explain the definition of a financial instrument.
• Determine the appropriate classification of a financial instrument, including those instruments that are subject to ‘split
classification’ – e.g. convertible loans.
• Discuss and account for the initial and subsequent measurement (including impairment in the case of financial assets) of financial assets and financial liabilities in accordance with applicable financial reporting standards and the finance costs associated with them.
Financial instruments 1