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So i am preparing for March P2 sitting. I was due to sit in Dec but i just started a new job so i wasnt able to give my studies the attention they needed.
Anyway, i am just looking into the subject o Financial Instruments. I note that it is considered a difficult subject to get to grips with and i can honestly say, i am not surprised.
To support my new job and my studies i bought the EY 2016 International GAAP. Its a meaty set of books, three in total. I have just opened the book up to get some background and better understanding of Financial Instruments and find its actually covered in one whole book, not one chapter. Its massive.
As i say, i not at all surprised that its a difficult subject to study. Its covered not by one standard, not even two, but four!!
IAS 32 – Financial Instruments – Presentation
IAS 39 – Financial Instruments – Recognition and Measurement
IFRS 7 – Financial Instruments – Disclosures and
IFRS 9 – Financial InstrumentsI am just looking into the intro of each of the standards etc and i have to be honest its a mess. (or it feels like a mess).
Clearly were not required to know that standards word for word, but should we really look at all of them together or just focus on IFRS 9? And lets be honest, is this likely to be a 7 point question or a 25 point question?
Whats the view on this subject?
Yes, this is a core topic in P2. It will certainly come up. I would say 10-25 marks, but you can never be too sure what the examiner is thinking.
You dont need to read a whole book. I know everyone’s method of study is different, but a whole book for one chapter is excessive!
The most important standard by far is IFRS 9.
IAS32, not a large standard, but still examinable.
IAS39, this standard has been phased out, being replaced by IFRS9. If this comes up, it’s likely to be as a current issue on how this standard differs with IFRS9.
IFRS 7. Summary of disclosures. Rarely examined, but I wouldnt take any chances with this examiner! Learn the summary of disclosures.I can honestly see why it is core to be honest, its a big subject and has been affected by so much change over the years.
I havent read the whole GAAP book, no i certainly dont have time for that! I also have a copy of the 2016 IFRS standards which works well along with other study material.
I still have a way to go before March, but as always time runs away, and before we know it, its exam day!
Thanks for your response trebleo 🙂
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