Financial Instruments

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October 5, 2021 at 9:25 am #637008
furqanshafiq
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Hello there! I hope your doing great.
My question is regarding the financial instruments specifically about the type of investments .
Are investment in equity and investments in debt both financial assets which would make the issuing of shares and issuing of debentures or loan for financing financial liabilities.
October 6, 2021 at 8:38 pm #637163
P2-D2
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Hi,

I’m very well, thanks. Hope you’re doing well too.

Yes, you are right with regards to your understanding. When be buy the shares/debt then we are recording a financial asset. The issuer (the entity receiving the cash) will be recording a financial liability.

Thanks
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