CFM21140 - Accounting for corporate finance: key concepts: financial instruments that are ‘outside the scope’

What financial instruments are outside the scope of IAS 32 and IAS 39 or IFRS 9

IAS 32, IAS 39 and IFRS 7, and IFRS 9 apply to all financial instruments, with the following principal exceptions:

Interests in subsidiaries, associates, and joint ventures See IFRS 10 (‘Consolidated Financial Statements’), IAS 27 (‘Separate Financial Statements’), IAS 28 (‘Investments in Associates and Joint Ventures’), unless these state that IAS 39 or IFRS 9 applies or can apply, in which the case the requirements of IAS 32 and IFRS 7 also apply.
Employee benefits plans See IAS 19 (‘Employee Benefits’)
Leases See IFRS 16 (‘Leases’) for periods beginning on or after 1 January 2019 or IAS 17(‘Leases’) for earlier periods. However, IAS39 or IFRS 9 applies to: (1) lessor’s lease receivables with respect to derecognition and impairment provisions; (2) lessees finance lease payables with respect to derecognition provisions; and (3) derivatives embedded in leases. (4) In respect of leases, the disclosure provisions of IAS 32 or IFRS 7 apply as well as those in IAS/IFRS 16
Business combinations IAS 39 or IFRS 9 does not apply to contracts between an acquirer and a vendor to buy or sell an acquiree at a future date.
Insurance contracts, defined at IFRS 4 IAS 39 or IFRS 9 applies, however, to derivatives embedded in insurance contracts unless they are themselves within the scope of IFRS 4. If IAS 39 or IFRS 9 applies, then so do IAS 32 and IFRS 7.
Financial guarantee contracts Excluded if falling within scope of IFRS 4. Included if linked to an ‘underlying’, for example, credit derivatives. Disclosure provisions in IAS 32 or IFRS 7 apply other than to those contracts falling within IFRS 4.
Financial instruments, contracts and obligations under share-based payment transactions under IFRS 2 Except (a) where IAS 32 applies to treasury shares that are part of a share-based payment arrangement (see CFM21220) and (b) those classed as derivatives.
Reimbursement of amounts for which the entity recognises a provision in accordance with IAS 37  

For FRS 101 users the scope exclusions noted above also apply.

FRS 102: Financial Instruments that are outside the scope of Sections 11 and 12. For users of FRS 102 similar scope exclusions apply. A full list of exclusions under FRS 102 is provided in paragraph 11.7 of FRS102.