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I can’t get financial assets and liabilities , according to the book I’m consulting it says that cash trade receivables(current assets) are part of financial assets so what is the difference between current assets or financial assets? And current assets and financial assets one in the same then what are non current assets including intangibles are they non financial assets? Pls help sir
This is really more of a P2 topic! Yes, it’s in the F7 syllabus but only at a superficial level
Receivables ARE a financial asset but, given that they tend to be receivable in the short term, the concept of present value or amortised cost is really a non-starter
Incidentally, payables are a financial liability but for the same reasons as for receivables we tend not to bother with them (normally payable within 12 months)
Seriously I wouldn’t get over-excited about them if I were you – there are many, many more interesting mark earning areas for you to be focussing on
Yes sir i agree with so like do u mean to say that financial assets and liabilities generally tend to be over a longer period of time and refer to trade receivables or cash equivalent more than a 12 month period ? Sorry I double posted this question in this forum my apologies
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