Financial asset

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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.


See also