(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.
(c) Explain the IAS32 accounting treatment of redeemable preference shares.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (8 reviews)
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
Answered By
Reuben Matanoh
I have been teaching students for more than three years, and recorded high [performances in my subjects. I love my job as a tutor, and I love to see my students excel in the subjects that I teach. Hire me for consistent quality work and guaranteed academic excellence.
0.00
0 Reviews
10+ Question Solved
Related Book For
International Financial Reporting A Practical Guide
ISBN: 978-1292200743
6th edition
Authors: Alan Melville
Question Posted:
Students also viewed these Business 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
-
Can you elucidate the patterns and processes of biodiversity hotspots, including the factors contributing to their high species richness and endemism, and how are these regions prioritized for...
-
The 2014 financial statements of LVMH Moet Hennessey-Louis Vuitton S.A. are presented in Appendix C at the end of this book. LVMH is a Paris-based holding company and one of the worlds largest and...
-
Listed below are the weekly cash register tape amounts for service fees and the related cash counts during the month of July. A change fund of $200.00 is maintained. REQUIRED 1. Prepare the journal...
-
Liza has volunteered to present to the executive board on behalf of her colleagues to argue for an increase in overtime pay. This is an open meeting, so she can expect for her colleagues to be there...
-
The sample function of a Gaussian process of zero mean and unit variance is uniformly sampled and then applied to a uniform quantizer having the input-output amplitude characteristic shown in Figure....
-
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...
-
Anti-addition of bromine to the following bicyclic alkene gives two separable dibromides. Suggest structures for each. (Remember that trans-decalin derivatives cannot undergo the chair...
-
Solve. Check for extraneous roots. l o g 3 x 2 - 3 x 2 = l o g 3 2
-
Using the MSFT financial statements, calculate the variance for the balances listed below (some are clearly stated and some you might have to calculate). Cost of services Selling, general,...
-
Scenario: Thomas is a 20-year-old man who lives in a small quiet neighborhood in downtown Toronto. Thomas has autism spectrum disorder, he can not verbally express himself and has limited...
-
What should Jack do here? Would your decision be different if: (a) Most other computer manufacturers also imported a fraction of their components without paying customs...
-
Shown here are annual financial data for a merchandising company and a manufacturing company. Music World Retail Wave - Board Manufacturing Beginning inventory Merchandise $ 1 3 5 , 0 0 0 Finished...
-
a. The tax law refers to gross income, yet the term gross income is not found on Form 1040. Explain. b. Why is it important to understand the concept of gross income even though the term is not found...
-
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...
-
On-market Interest Rate Swap If the dealer's mid-rate for 5-year swaps is 9.45%, (Dealer pays subtract 10 bpts, dealer receives add 10 bpts) construct a five year plain vanilla interest rate swap...
-
John ordered lumber materials from Eduardo to be used in the construction of the niche for the burial of John's wife on December 23, 2012. John followed up the order because his laborers were ready...
-
Provide an analysis of how Commonwealth Bank will comply with ASRS1 and ASRS2 for 2024 financial year. (This may be considered as a first-time adoption of an accounting standard AASB 1.) What...
Study smarter with the SolutionInn App