Financial Stability Oversight Council and Financial asset: Difference between pages

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''US.''
A financial asset is an asset whose value is dependent on the obligation of another person or entity.
(FSOC). The Financial Stability Oversight Council was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) for three main purposes:




1. To identify risks to the financial stability of the United States that could arise from the financial distress or failure, or ongoing activities, of large, interconnected bank holding companies or non-bank financial companies, or that could arise outside the financial services marketplace.
IAS 32 defines a financial asset as an asset that is <u>any of</u> the following:




2. To promote market discipline, by eliminating expectations on the part of shareholders, creditors, and counterparties of such companies that the US government will shield them from losses in the event of failure.


'''1.''' Cash; <u>or</u>
'''2.''' An equity instrument of another entity; <u>or</u>
'''3.''' A contractual right to:
*Receive cash or another financial asset from another entity; <u>or</u>
*Exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the reporting entity; <u>or</u>
'''4.''' A contract that will or may be settled in the reporting entity's own equity instruments and is <u>either</u>:
*A non-derivative for which the entity is or may be obliged to receive a variable number of the entity's own equity instruments; <u>or</u>
*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 entity's own equity instruments.


3. To respond to emerging threats to the stability of the US financial system.


== See also ==
== See also ==
* [[Dodd-Frank]]
* [[Amortised cost]]
* [[Assets]]
* [[Financial instrument]]
* [[Financial liability]]
* [[IAS 32]]

Revision as of 16:03, 26 August 2013

A financial asset is an asset whose value is dependent on the obligation of another person or entity.


IAS 32 defines a financial asset as an asset that is any of the following:


1. Cash; or


2. An equity instrument of another entity; or


3. A contractual right to:

  • Receive cash or another financial asset from another entity; or
  • Exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the reporting entity; or


4. 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 receive a variable number of the 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 entity's own equity instruments.


See also

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