Financial asset: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Add links.) |
imported>Doug Williamson (Layout.) |
||
| Line 4: | Line 4: | ||
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. | ||
Revision as of 13:03, 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.
