(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 answer-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
For the analysis run by Batten, which of the following is an incorrect conclusion from the regression output? A. The estimated intercept from Battens regression is statistically different from zero...
Refer to the information in Exercise 16-6. Assume that Fields uses the FIFO method of process costing. 1. Calculate the equivalent units of production for the forming department. 2. Calculate the...
The Sabat Corporation manufactures and sells two products: Thingone and Thingtwo. In July 2013, Sabats budget department gathered the following data to prepare budgets for 2014: 2014 Projected Sales...
Sid needs 0.8 meters of canvas material to make a carry-all bag for his wheelchair. If canvas is $11.64 per meter, how much will Sid spend? (Note that $11.64 per meter is the same as $11.64 for one...
The G. Saussy Manufacturing company is putting out four new electronic components. Each of Saussy's four plants has the capacity to add one more product to its current line of electronic parts. The...
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...
Use the table in Exercise 37 to complete the following table. Exercise 37 (f + 8)(x) (f 8)(*) (fg)(x) ()(*) | -2 f(x) g(x) -2 5 -2 4 10
QUESTION 31 What contemporary programming languages do not include a goto statement? C# Python C Ruby Java QUESTION 32 The two (2) methods to implement dynamic scoping are? shallow access deep access...
In reference to the load, how are inductors connected to help prevent voltage spikes and surges? Are inductors connected in parallel or in series with the load. Explain.
This problem demonstrates the dependence of an annuity's future value on the size of the periodic payment. Suppose a fixed amount vill be invested at the end of each year and that the invested funds...
A very well known furniture retailer frequently advertises "no money down and no interest until 2006!" You want to buy some furniture now, and have a bit of spare cash available. You go to the store...
14 (14%) HBC Group uses revaluation accounting for a class of equipment it uses in its golf club refurbishing business. The equipment was purchased on January 2, 2020, for $500,000; it has a 10-year...
Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2016, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 and their market rate is 8% at the issue...
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...
Max Warrie, a famous former Australian cricketer had agreed to play at the Sydney Cricket Ground in an exhibition match against a rest of the world team in the coming Australian summer. He was to be...
Does a creditor have an obligation to advise a company to obtain legal advice before signing a contract? In this case, a director of a company is saying they did not know what they were signing when...
Randal embezzled $6000 of his employer's money and then disappeared. The employer's accountant called at Randal's residence and found out that his wife had a $3500 term deposit. When the accountant...

(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