Financial asset: Difference between revisions
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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> | :1. Cash; <u>or</u> | ||
2. An equity instrument of another entity; <u>or</u> | :2. An equity instrument of another entity; <u>or</u> | ||
3. A contractual right to: | :3. A contractual right to: | ||
*Receive cash or another financial asset from another entity; <u>or</u> | :*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> | :*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>: | :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 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. | :*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. | ||
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* [[Amortised cost]] | * [[Amortised cost]] | ||
* [[Assets]] | * [[Assets]] | ||
* [[Entity]] | |||
* [[Equity instrument]] | |||
* [[Financial instrument]] | * [[Financial instrument]] | ||
* [[Financial liability]] | * [[Financial liability]] | ||
* [[IAS 32]] | * [[IAS 32]] | ||
* [[Reporting entity]] | |||
Revision as of 13:02, 4 August 2019
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.
