(a) Define the terms financial instrument, financial asset, financial liability and equity instrument. (b) Explain the way...

Question:

(a) Define the terms "financial instrument", "financial asset", "financial liability" and "equity instrument".

(b) Explain the way in which international standard IAS32 distinguishes between financial liabilities and equity instruments.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

International Financial Reporting A Practical Guide

ISBN: 978-1292200743

6th edition

Authors: Alan Melville

See More Books

Question Posted: Feb 17, 2020 10:56 AM

See More Questions

Define a financial instrument. Provide three examples of current liabilities that represent financial instruments.
(a) Define the terms assets, liabilities, and owners equity. (b) What items affect owners equity?
(a) Define the terms assets, liabilities, and stockholders equity. (b) What items affect stockholders equity?
The estimated times (in weeks) and immediate predecessors for the activities in a project are given in the following table. Assume that the activity times are independent. (a) Calculate the expected...
Write the structure for a. dCMP b. dGMP
What is the impact on hourly cost of use when the annual hours of utilization are overstated and do not materialize?
Do some research on Sabermetrics. What is it? What does it have to do with decision making?
Modern Metalworks Company has two departments, milling and assembly. The company uses a job costing system with a plantwide cost driver rate that is computed by dividing plantwide overhead costs by...
What are the allowances for federal and state withholding? ary Fox Complete an employee earnings record for the below employee of TCLH Industries. The pay period is from 12/07/2020 through...
Q1: (50 Mark) Given the following noise data, calculate LAeq, L10, L50,L90, Nc and Lap: Time(sec) SPL(dBA) 10 70 20 50 30 65 40 60 50 55 60 65 70 60 80 55 90 70 100 50
A company which makes only one type of product incurs fixed production overheads of 240,000 during the year to 31 March 2018. Normal production capacity is 80,000 units per annum. Calculate the...
(a) Explain what is meant by a "compound" financial instrument. Also explain the required accounting treatment of such an instrument. (b) On 1 April 2016, a company issues a 500,000 4% convertible...
(Calculating cost of sales and ending inventory using average cost, FIFO, and LIFO cost flow assumptions, LO 1, 2) Information is provided for Olds Ltd. on page 479. Required: Calculate cost of goods...
Show that staged column diameter is proportional to (feed rate) ${ }^{1 / 2}$ and to $(1+\mathrm{L} / \mathrm{D})^{1 / 2}$.
An atmospheric column with 25 real stages is operating with a pressure drop of 0.6 in. of water per stage. Assume pressure drop in the condenser and the reboiler is $1.2 \mathrm{in}$. of water...
Sketch the requested conic sections in Problems 14-23 using the definition. A parabola with the distance between the directrix and focus 1 unit
Why is the Rosenblum case a particularly important case in auditor liability?
Draw a population curve for a city whose growth rate is $1.3 \%$ and whose present population is 53,000 . The equation is \[P=P_{0} e^{r t}\] Let $t=0,10, \cdots, 50$ to help you find points for...
Give three examples of engineered products that are designed to work well over a million times.
a. Show that the expansion of q(x) in ascending powers of x can be approximated to 10 2x + Bx 2 + Cx 3 where B and C are constants to be found. b. Find the percentage error made in using the series...
Dodson and Fogg began trading in equal partnership on 1 July 2018. On 1 July 2019, they admitted Jackson as a partner and agreed to share profits in the ratio 5:4:1. The adjusted trading profits of...
Pickwick, Snodgrass and Tupman are in partnership, making up accounts to 31 March annually. Each partner receives 6% interest on fixed capital. Pickwick and Tupman are entitled to annual salaries of...
Nickleby, Copperfield and Drood have traded as equal partners for many years, making up accounts to 31 December each year. As from 1 April 2021 they agree to share profits in the ratio 1:2:2. The...
ACCT 401 For each of the following independent situations, indicate the amount the taxpayer must include in gross income: (Leave no answer blank. Enter zero if applicable.) a.Phil won $790 in the...
Pompeii, Inc., has sales of $52,000, costs of $23,800, depreciation expense of $2,450, and interest expense of $2,200. If the tax rate is 22 percent, what is the operating cash flow, or OCF? (Do not...
Please provide a brief explanation as to whether the following statement is true or false. A foreign exchange trader makes very large losses that are outside the trading limits defined for her desk....

(a) Define the terms financial instrument, financial asset, financial liability and equity instrument. (b) Explain the way...

Question:

Step by Step Answer:

a It is possible to trade financial instruments as assets but it is also possible to trade financial instruments as a bundle of capital that is exchan...View the full answer

International Financial Reporting A Practical Guide

Students also viewed these Business questions