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:
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.
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