Chapter CFM23093

Record NumberCFM23093
Published date16 April 2016
For those entities applying FRS 105 with an accounting period beginning on or after 1 January 2016.

For those micro-entities that chose to apply FRS 105 there is no financial instruments accounting policy choice, they must follow the accounting requirements of Section 9.

Section 9 sets out the requirements for the recognition, derecognition, measurement and disclosure of financial assets and financial liabilities.

FRS 105 does not have the distinction between ‘basic’ financial instruments and non-basic financial instruments as contained in FRS 102.

Examples of financial instruments that are within the scope of FRS 105 Section 9 are as follows:

  • Cash;
  • Trade debtors and creditors;
  • Commercial paper and commercial bills held;
  • Demand and fixed-term deposits with banks or similar institutions;
  • Bonds, loans and similar instruments;
  • Investments; and
  • Derivatives (e.g. options, warrants, futures contracts...

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