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Sir how much knowledge is required for ifrs 9 in p7 exam, it was always a standard i never understood, but in p7 i dont think much information regarding hedge instruments would be needed? can u explain what is required and whats the best way to prepare for it, in many places in the examiner answers ive seen the examiner just stating that its an investment or hedging instrument which would require great expertise and hence and audit risk arises as a result and not really mentioning the treatment of the instrument itself
I think that you should be fine to emulate the examiner’s answers. Identify that it’s a financial instrument, that it appears to be a hedge and that there is an increased risk that it has been treated in an inappropriate manner
You’re not likely to have the time to be able to show off your extensive knowledge of the appropriate accounting treatment for fair value hedges, cash flow hedges nor even those hedges of net investments in foreign operations
I really would not too excited about IFRS 9 raising more than just its eyes over the parapet of P7. It’s unlikely that a question is set out in such a way that the business model test is satisfied but the instrument fails the cash flow characteristics test
Move on – there’s so much more to practice on
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