Financial liability: Difference between revisions
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IAS 32 defines a financial liability as liability that is any of the following: | IAS 32 defines a financial liability as liability that is any of the following: | ||
2. A contract that will or may be settled in the reporting entity's own equity instruments, and is either: | '''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 == | ||
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* [[IAS 32]] | * [[IAS 32]] | ||
* [[Liabilities]] | * [[Liabilities]] | ||
Revision as of 16:05, 26 August 2013
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.
