Financial assets

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A general definition/description is:

A financial asset is a tangible liquid asset that gets its value from a contractual claim. Cash, stocks, bonds, bank deposits and the like are examples of financial assets. Unlike land, property, commodities or other tangible physical assets, financial assets do not necessarily have inherent physical worth. See also general information on Wikipedia:

https://en.wikipedia.org/wiki/Financial_asset

For IFRS financial reporting purposes financial assets  exclude cash and cash equivalents, trade and other receivables, biological assets carried at fair value through profit or loss and  investments in associates.

In general under IFRS financial assets comprise:

  • Loans and receiavbles;
  • Financial assets at fair value through profit or loss;
  • Derivatives designated as hedging instruments in an effective hedge;
  • Held-to-maturity financial assets;
  • Available-for-sale financial assets.

Other commonly used names for IFRS financial assets comprise:

  • Investments in associates and joint arrangments;
  • Other investments.

See also what is useful information and more details to present useful information for guidance to separate or combine financial reporting lines in the main financial statements or notes thereto.

 

 

 

 

 

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