What is Financial Instrument?
Financial instrument in essence is simply a contract that will ultimately result in financial asset in the hands of one party and corresponding financial liability in the hands of another party to the same contract. For example, invoice, bill receivable, promissory note, cheques are well known examples of financial instruments. However, the distinguishing factor between financial […]
Are prepaid expenses financial asset?
In order to confirm whether a particular asset is a financial asset or not, we will have to look at the definition of financial asset International Accounting Standard IAS 32 defines the term financial asset in para 11. Although the definition of financial asset is a bit detailed and lengthy but I will be quoting […]
