Financial liability: Difference between revisions
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''Financial reporting.'' | |||
IAS 32 defines a financial liability as liability that is any of the following: | IAS 32 defines a financial liability as liability that is any of the following: | ||
1. | |||
A contractual obligation either to: | |||
*Deliver cash or another financial asset to another entity; or | *Deliver cash or another financial asset to another entity; or | ||
*Exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the reporting entity. | *Exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the reporting entity. | ||
2. | |||
A contract that will or may be settled in the reporting entity's own equity instruments, and is either: | |||
*A non-derivative for which the entity is or may be obliged to deliver a variable number of the reporting entity's own equity instruments; or | *A non-derivative for which the entity is or may be obliged to deliver a variable number of the reporting entity's own equity instruments; or | ||
*A derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the reporting entity's own equity instruments. | *A derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the reporting entity's own equity instruments. | ||
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== See also == | == See also == | ||
* [[Amortised cost]] | * [[Amortised cost]] | ||
* [[Capital]] | |||
* [[Capital instrument]] | |||
* [[Capital market]] | |||
* [[Derivative instrument]] | |||
* [[Equity instrument]] | |||
* [[Financial]] | |||
* [[Financial asset]] | * [[Financial asset]] | ||
* [[Financial instrument]] | * [[Financial instrument]] | ||
* [[Financial markets]] | |||
* [[IAS 32]] | * [[IAS 32]] | ||
* [[Liabilities]] | * [[Liabilities]] | ||
* [[Money market]] | |||
* [[Primary market]] | |||
* [[Secondary market]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
Latest revision as of 22:34, 11 March 2023
Financial reporting.
IAS 32 defines a financial liability as liability that is any of the following:
1.
A contractual obligation either to:
- Deliver cash or another financial asset to another entity; or
- Exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the reporting entity.
2.
A contract that will or may be settled in the reporting entity's own equity instruments, and is either:
- A non-derivative for which the entity is or may be obliged to deliver a variable number of the reporting entity's own equity instruments; or
- A derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the reporting entity's own equity instruments.
