Financial Reporting Council and Financial liability: Difference between pages
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''Financial reporting | ''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. | |||
== See also == | == See also == | ||
* [[ | * [[Amortised cost]] | ||
* [[ | * [[Equity instrument]] | ||
* [[ | * [[Financial asset]] | ||
* [[Financial instrument]] | |||
* [[Derivative instrument]] | |||
* [[Financial | * [[IAS 32]] | ||
* [[Liabilities]] | |||
* [[ | |||
* [[ | |||
* [[ | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
Revision as of 13:00, 4 August 2019
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.
