Financial instruments often cause fear and trepidation but if you take the time to unpack the rules one at a time, your confidence will be restored when trying to do the accounting for financial instruments.

GRAP 104 Financial Instrument assets and liabilities have separate accounting requirements and present an accountant with varying options for classifying, as well as subsequently remeasuring financial instruments.

The typical classification / measurement bases are amortised cost, fair value, and cost.

GRAP 108 Statutory Receivables are receivables that arise from legislation and require settlement by another entity in cash or another financial asset.

Our goal: Simplify the requirements of GRAP 104 and 108, and work through principles practically, so that we can bust the myth that financial instruments are complicated.