Hello Is there any difference between financial assets and financial instruments? Page 16 of ch17 Financial Assets: Financial instruments: Please explain the difference between two statements on the same page. Thanks in advance
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
