Scribd Logo
Upload

Welcome to Scribd!

  • Chapter 1 Summary

    Uploaded by

    Mildred Angela Dingal
    16 views1 page
    This chapter discusses the nature of financial assets. A financial instrument is any contract that gives one entity a financial asset and another entity a financial liability or equity. Financial assets include cash, equity in another entity, contractual rights to receive cash or assets from another entity, debt investments classified as liabilities by the issuing entity, and derivatives whose value is tied to interest rates.

    Original Description:

    Original Title

    Chapter 1 Summary.docx

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This chapter discusses the nature of financial assets. A financial instrument is any contract that gives one entity a financial asset and another entity a financial liability or equity. Financial assets include cash, equity in another entity, contractual rights to receive cash or assets from another entity, debt investments classified as liabilities by the issuing entity, and derivatives whose value is tied to interest rates.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    16 views1 page

    Chapter 1 Summary

    Uploaded by

    Mildred Angela Dingal
    This chapter discusses the nature of financial assets. A financial instrument is any contract that gives one entity a financial asset and another entity a financial liability or equity. Financial assets include cash, equity in another entity, contractual rights to receive cash or assets from another entity, debt investments classified as liabilities by the issuing entity, and derivatives whose value is tied to interest rates.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Chapter 1

    Nature of Financial Assets

    Financial Instrument – any contract that gives rise to a financial


    asset of one entity (point of view of the holder) and a financial liability
    or equity instrument of another entity (point of view of the issuer)

     Financial Asset – cash and cash equivalents, equity


    instrument of another entity, contractual right to receive from
    another entity cash or another financial asset, and
    investments in debt instruments of another entity classified
    by the latter entity as financial liabilities

    - includes derivatives—a financial instrument that


    meets:

    a. its value changes in response to change in


    specified interest rate

    You might also like