ACTG 3110 Lecture Notes - Lecture 8: Cash Cash, Financial Instrument, Financial Statement

• School: York University
• Department: Accounting
• Course: ACTG 3110
• Professor: Elizabeth Farrell

Document Summary

Financial assets: financial statement elements such as cash, accounts/notes receivable, investments and derivatives. Monetary items: cash and receivable are monetary items because they represent a claim to cash where the amount is fixed by contract or agreement. Classification criteria: objective is to hold financial asset to collect contractual cash flows, contractual cash flows are solely principal and interest. Classification criteria: objective is to hold financial asset to collect contractual cash flows and eventually sell, contractual cash flows are solely principal and interest. Fair value (transaction value) and establishes the cost of the financial instrument. Amortized cost information in income statement and the difference between fair value and amortized cost in oci. Asses that meet the amortized cost criteria can nonetheless ne classified as fvtpl if: loans and receivables will be sold in the short term, management wishes to avoid an accounting mismatch (related/hedged financial instruments are fvtpl)