In the context of international Accounting Standard (IAS) 39 “Financial instruments”. Distinguish between a financial asset and financial liability

In the context of international Accounting Standard (IAS) 39 “Financial instruments”.
Distinguish between a financial asset and financial liability

Answers

1. Financial asset is any asset that is:
a) Cash
b) An equity instrument of another entity
c) A contractual right to receive cash or other financial from another entity.

2. Financial liability: - It is any liability that involves a contractual obligation to deliver cash or another financial asset to another entity or to exchange financial assets/liabilities .with another entity under conditions that is potentially unfavorable to the entity.

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Wilfykil answered the question on February 8, 2019 at 05:24

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