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Sec 2.6 Accounting for financial instruments (page 16 of ch 17)

Y

yogesh167

Member
Hello

Is there any difference between financial assets and financial instruments?

Page 16 of ch17
Financial Assets:
upload_2019-2-28_20-54-20.png

Financial instruments:
upload_2019-2-28_20-54-58.png

Please explain the difference between two statements on the same page.

Thanks in advance
 
yogesh167 said:
Hello

Is there any difference between financial assets and financial instruments?

Page 16 of ch17
Financial Assets:
View attachment 1187

Financial instruments:
View attachment 1188

Please explain the difference between two statements on the same page.

Thanks in advance
Click to expand...
Hi

Financial instruments refer to contracts that generate a financial asset to one party and a financial liability to another. Equity and debt are examples of such instruments.

All financial instruments are fair value at initial recognition, then depending how IAS 39 has categorised the underlying asset, IFRS 7 will require different disclosures. Eg equities (available for sale) will be measured and presented differently to loans and receivables.

Hope this helps.
Thanks
Em
 
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