Financial liability: Difference between revisions
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* [[Financial asset]] | * [[Financial asset]] | ||
* [[Financial instrument]] | * [[Financial instrument]] | ||
* [[Derivative]] | |||
* [[IAS 32]] | * [[IAS 32]] | ||
* [[Liabilities]] | * [[Liabilities]] | ||
[[Category:Accounting_and_Reporting]] | |||
Revision as of 17:40, 20 April 2014
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.
