Business entity’s financial statements present the financial position and results together with the cash flows which are used by investors for economic decision.

Uniformity and comparability of financial statements assist users of such Financials to compare different business entities and make the appropriate and correct decisions. At present many countries use IFRSs for preparing the financials. Iranian business entities should inevitably use such IFRSs in order to expand their activities. The problem with Iranian Accounting standards is not applying the IFRS9 (financial instruments). The IFRS standards relating to financial instruments include IA32; financial instruments: presentation, IFRS9; financial instruments: Recognition and measurement and IFRS7; financial instruments: Disclosure.

Iranian Accounting Standards No.36 & 37 are similar to IAS32 and IFRS7, but there are no Accounting standards in our country existing for recognition, classifying and measurement of financial instrument (equivalent of IFRS9). On the other hand, there has been no guidelines for applying these standards. This book aims to familiarize readers with concepts related to financials instruments and numerous practical examples of recognition, derecognition, measurement, classification, impairments and the methods of presenting and disclose of financial instruments in simple terminology.

The most important event was the selection of this book as the book of the year by the best book festival in the field of Accounting & finance for the year 1400 in the nineteenth Iran national Accounting conference.