QUESTION 2

Discuss the accounting treatment for financial instruments according to IAS 32 and IFRS 9. In your answer, include the following aspects:

1. Definition of financial instruments, including financial assets, financial liabilities, and equity instruments.
2. Classification criteria for financial assets and liabilities.
3. Measurement principles at initial recognition and subsequent measurement.
4. Discussion of impairments related to financial assets.
5. Disclosure requirements concerning financial instruments.