ACCT3321 Lecture Notes - Lecture 6: Financial Instrument, Financial Asset, Transaction Cost
Document Summary
Any contract that gives rise to both a nancial asset of one entity and a nancial liability or equity instrument of another entity. Contractual right to receive cash or another nancial asset from another entity. Contractual right to exchange nancial instruments with another entity under conditions that are potentially favourable. Any liability that is a contractual obligation (to deliver cash or other nancial asset to another entity, to exchange nancial assets or liabilities with another entity under conditions that are potentially unfavourable) Any contract that evidences a residual interest in the assets of another entity after deduction of all its liabilities. Contracts resulting in prepayment of cash for goods and services. Commodity contracts settled by delivery of a non- nancial asset. Rights/obligations from statutory requirements imposed by governments (tax liabilities) Environmental obligations after mining activities have ceased. Interests in subsidiaries, associates and joint ventures. Financial assets (cash, acc receivables, notes receivables, loans receivables, derivatives with potentially favourable exchange conditions)
