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A financial asset is any asset that is:
? ‘cash
? an equity instrument of another entity
? a contractual right to receive cash or another financial asset from
another entity
? a contractual right to exchange financial instruments with another
entity under conditions that are potentially favourable to the entity? a non-derivative contract for which the entity is or may be obliged to
receive a variable number of the entity’s own equity instruments’
(IAS 32, para 11).
anyone explain the last point please along with exampleFor the exam:
FA =
contractual right to receive cash
investment in another company’s sharesRefer to post:
https://opentuition.com/topic/definition-of-financial-assets-and-liabilities/
If you wish to explore further recommend you post in general forum.
But the exam will ask simple questions (since the syllabus change) and you need to explain in simple terms.
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