Financial asset: Difference between revisions

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A financial asset is an asset whose value is dependent on the obligation of another person or entity.
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 <u>any of</u> the following:  
IAS 32 defines a financial asset as an asset that is <u>any of</u> the following:  


1. Cash; <u>or</u>


2. An equity instrument of another entity; <u>or</u>


3. A contractual right to:
'''1.''' Cash; <u>or</u>
3.1. Receive cash or another financial asset from another entity; <u>or</u>  
 
3.2. Exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the reporting entity; <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.


4. A contract that will or may be settled in the reporting entity's own equity instruments and is <u>either</u>:
4.1. 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>
4.2. 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 ==
== See also ==
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* [[Financial liability]]
* [[Financial liability]]
* [[IAS 32]]
* [[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