Financial liability: Difference between revisions

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== See also ==
== See also ==
* [[Amortised cost]]
* [[Amortised cost]]
* [[Equity instrument]]
* [[Financial asset]]
* [[Financial asset]]
* [[Financial instrument]]
* [[Financial instrument]]

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.


See also