Page 58 - F2 Integrated Workbook STUDENT 2019

Chapter 3

1.2 Examples of financial instruments

Financial assets (PROVIDE finance)

 cash

 an equity instrument of another entity

 a contractual right to receive cash from another entity

 a contractual right to exchange financial instruments with
another entity under conditions that are potentially
favourable.’ (IAS 32, para 11)

Financial liabilities (RAISE finance)

 A contractual obligation to deliver cash to another entity

 A contractual right to exchange financial instruments with
another entity under conditions that are potentially
unfavourable. (IAS 32, para 11)

Equity instrument (RAISE finance)

‘An equity instrument is any contract that evidences a residual
interest in the assets of an entity after deducting all of its
liabilities.’ (IAS 32 para 11)

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