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Description

Compound Financial Instruments: Classification, Separation and Accounting under IFRS 9

Separate debt from equity in a compound financing arrangement, then track each component under IFRS 9

  • 0.43 days — 3 h
  • In-person or virtual
  • Intermediate
  • Up to 6 participants

Convertible bonds, interest-bearing shareholder current accounts, notes issued with warrants: these financing arrangements combine a debt component and an equity component. Classifying the instrument as a single item distorts both finance costs and equity, and the question resurfaces every time the contractual terms are amended.

Three hours online to analyse a compound financing contract, separate its components at issue date and follow their subsequent measurement under IFRS 9. The session works from actual contractual clauses and from amortised cost mechanics rather than from a commentary on the standard itself.

Learning objectives

  • Analyse the contractual clauses that drive classification
  • Distinguish a debt component from an equity component
  • Measure the components separately at initial recognition
  • Track the debt component at amortised cost
  • Handle modifications of terms and settlement of the instrument

What makes this programme different

The analysis starts from real contractual clauses rather than theoretical diagrams
An amortised cost schedule is built and reviewed live during the session
Convertible bond and shareholder current account cases are compared point by point

Programme

1Reading the financing contract

Finding what drives classification

  • Identify the redemption and conversion clauses
  • Pinpoint contractual obligations to deliver cash
  • Distinguish a compound instrument from a hybrid instrument
  • Position the structures most commonly used within groups

2Separating the components at issue

Allocating the initial value

  • Measure the debt component by discounting the contractual cash flows
  • Allocate the residual amount to equity
  • Apportion transaction costs between the components
  • Record the issue entries

3Subsequent measurement and settlement

Carrying the instrument through to its end

  • Build the amortised cost schedule
  • Recognise the effective interest expense
  • Account for conversion, then redemption or buy-back
  • Deal with a modification of contractual terms
  • Prepare the disclosures for the notes

Who is it for

Consolidation specialists, financial controllers and financial analysts working on IFRS financial statements.

Prerequisites

Working knowledge of the recognition principles applicable to financial instruments under IFRS.

Dates & locations

12 scheduled dates between November 2026 and December 2027. Seats are confirmed in the order enquiries are received.

November 2026

December 2026

January 2027

February 2027

March 2027

April 2027

May 2027

June 2027

September 2027

October 2027

November 2027

December 2027

None of these dates suit you? We open additional sessions on request, and any programme can be run privately for your team.

Practical details

Before the programme
Online positioning questionnaire. Your development objectives are shared with the trainer, who tailors the practical case studies to your context.
Teaching methods
Theoretical input, workshops and practical case studies. Digital course materials and method sheets provided.
Assessment
Multiple-choice tests and role-play exercises. Assessment of learning at the start and end of the programme, with immediate and 60-day follow-up evaluations.
After the programme
One year of access to the e-learning platform. Self-assessment of the skills acquired and a 30-day follow-up session with your trainer.
How to register
Registration online or on the basis of a quotation.
Lead time
11 working days after confirmation of registration.
Accessibility
Accessible to people of determination. Contact our accessibility coordinator to design a suitable solution: contact@mpf-academy.ae
Start dates
Rolling intake: in addition to the scheduled sessions, this programme can start on request.