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Financial asset vs liability

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Financial asset vs liability

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by Stephen Widberg.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • February 9, 2020 at 6:36 pm #561202
    mirliz
    Member
    • Topics: 28
    • Replies: 49
    • ☆☆

    If for example, banana acquired $10m 5% bond at par with interest being due at 30 june each year and intend to hold the bond to collect contractual cash flow.

    Is this a financial asset for banana? If yes, in what ways does it become a FA?
    Bcs I’m still confused FA with FL

    February 10, 2020 at 7:03 am #561230
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3411
    • ☆☆☆☆☆

    Acquire = buy = hold = FA = contractual right to receive cash

    February 10, 2020 at 8:22 am #561237
    mirliz
    Member
    • Topics: 28
    • Replies: 49
    • ☆☆

    This really helpful. Thnk you Stephen!

    February 10, 2020 at 10:16 am #561253
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3411
    • ☆☆☆☆☆

    My pleasure

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