A financial instrument is any contract that gives rise to A financial asset A financial liability A financial asset of one entity and a financial liability of another entity FA © 2014 A financial asset of one entity and a financial liability or equity instrument of another entity

A financial instrument is any contract that gives rise to A financial asset A financial liability A financial asset of one entity and a financial liability of another entity FA © 2014 A financial asset of one entity and a financial liability or equity instrument of another entity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Question: Classify each of following items as a contingent liability, a provision or neither: (e) an…

A: Contingent liabilities are those liabilities which may or may not arise in future. These needs to be…

Q: According to AASB 10/IFRS 10 Consolidated Financial Statement, an investor has control of an…

A: IFRS 10 Consolidated Financial Statements provides the requirements for preparation and presentation…

Q: definition and recognition criteria of liabilities

A: Liability is the obligation to be repaid or loss to be met in future.

Q: Understand supplemental LIFO disclosures and the effect of LIFO liquidations onnet income.

A: The LIFO strategy works under the presumption that the last item of stock acquired, is the item that…

Q: A legal obligation is an obligation that derives from: O a. Ordinary course of action. O b. Business…

A: This is related to IAS 37 Provisions, contingent liabilities and Continent assets.

Q: State the accounting guidelines for derivative financial instruments.

A: Derivative: Derivative is a financial instrument whose value is derived from the underlying…

Q: US generally accepted accounting principles are currently developed by which entity? B . Th e…

A: The accounting principles are the guidelines and rules which companies should follow while reporting…

Q: financial institution is a mutual association, it means that it is owended by the

A: Introduction: Financial institutions can also be known as a institution or a corporation which deals…

Q: Intermediate Accounting 105 May I please have a GAAP explanation, along with examples providing…

A: The objective of the question is to understand the conditions under which a short-term obligation…

Q: TRUE OR FALSE 1. PFRS 4 SUPERSEDES PFRS17 2.PFRS 17 APPLIES TO REINSURANCE CONTRACTS3.INCOME SERVICE…

A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…

Q: Describe characteristics of special-purpose entities and identify the required financial statements…

A: A special-purpose entity is also referred to as a special-purpose vehicle, which is defined as a…

Q: An entity shall measure equity instruments issued to extinguish all or part of a financial liability…

A: An entity shall measure equity instruments issued to extinguish all or part of a financial liability…

Q: Statement 1: An entity shall disclose the period of construction in which borrowing costs are…

A: borrowing cost include financial charges like interest on loan and overdraft. the capitalisation of…

Q: Which of the following legislation that are not connected to debts payment and/or solvency of the…

A: Answer: Option c. Companies Act 2016 is correct

Q: It is a stage of impairment that covers debt instruments having objective evidence of impairment at…

A: Answer: IFRS 9 deals with expected credit losses. There are three different stages. Stage 1- It…

Q: There are areas of differences between IFRS and GAAP definition recognition measurements allowing…

A: GAAP, or generally accepted accounting principles, is a U.S.-based organization. In accordance with…

Q: . PAS 28 defines an ‘associate’ as Choices An entity that controls one or more entities. An…

A: Solution 1: PAS 28 defines an ‘associate’ as "An entity over which the investor has significant…

Q: erecognition of Provision PAS 37

A: Definition IAS 37 Provisions, Contingent Liabilities and Contingent Assets outlines the accounting…

Q: GAAP requires that debt issue costs be recorded separately and amortized over the term of the…

Q: Knowledge Check 01 Which of the following describes the criteria that must be met for a contingent…

Q: US generally accepted accounting principles are currently developed by which entity? A . Th e…

A: The US GAAP or Generally accepted accounting principles is issued by the Financial Accounting…

Q: Which of the following entity is involved in regulating the financial sector Ⓒa PFRDA Ob. SEBI OC…

A: The financial sector is a sector that is responsible for providing financial services to the…

Q: under the conceptual framework for internationai financial reporting a non-contraling interest fits…

A: Non-controlling interest Non-controlling interest is also referred to as the minority interest…

Q: Under the fair value through other comprehensive income (FV-OCI) model, holding gains and losses are…

A: 1. Fair Value Through Other Comprehensive Income (FV-OCI) Model:Correct Answer: a. recognized in…

Q: investments in debt instruments are financial asset

A: First option is wrong because debt instruments are not equity instruments. Second option is wrong…

Q: Define agency debt

A: Agency debt are generally the debentures, bonds which is issued by agencies such as federal agencies…

Q: How is a contingent liability accounting for in a business combination by the acquirer under IFRS…

A: Contingent liabilities are those liabilities which has probability of chance to become a liability…

Q: 19 - What is the monetary expression of the rights of third parties lending to the enterprise over…

A: The question is multiple choice question. Required Choose the Correct Option.

Q: ALM (Asset Liability Management) is particularly critical for: Group of answer choices B. Trust…

A: ALM (Asset Liability Management) commonly used for managing the finacial risk.

Q: Intermediate Accounting 105 May I please have a GAAP explanation, along with examples providing…

A: Under Generally Accepted Accounting Principles (GAAP), short-term obligations are generally…

Q: AASB 101 indicates that when presenting a statement of financial position, an entity should:…

A: The accounting standard AASB 101 prescribes the basis for the presentation of the general purpose…

Q: What is the principle for recognition of a financial asset in PFRS 9? A. A financial asset is…

A: Financial asset is a form or type of assets under which rights are obtained to receive future…

Q: Financial contracts are those which give simultaneous rise to the financial assets of one entity and…

A: Introduction: A financial contract is an arrangement in the form of an individually negotiated deal,…

Q: Limited liability refers to an owner's liability for which of the following? I. The amount invested…

A: Under limited liability company the shareholders liability is limited only to the extent of nominal…

Q: The elements of financial statements include investments by owners. These are increases in an…

A: Net asset is also called as equity because it is calculated as assets minus liabilities of the…

Q: According to PFRS9 Financial Instruments, a financial instrument is recognized when the entity…

A: As per PFRS 9 Financial Instruments, a financial instrument is recognized when the entity becomes a…

Q: Stockholders' equity can be described as debtor claim on total assets. creditorship claim on total…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Investments in associates must be included in separate financial statements that a corporation…

A: One of the most important financial entities in the economy is the banking sector. They mostly take…

Q: An arrangement for creditors to accept an amount less than the amount owed to them is referred to as…

A: The debtor typically proposes a payment plan that offers to pay a certain percentage of the total…

Question

A financial instrument is any contract that gives rise to

A financial asset
A financial liability
A financial asset of one entity and a financial liability of another entity FA © 2014
A financial asset of one entity and a financial liability or equity instrument of another entity

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

When share appreciation rights are granted to employees expense, liability and equity accounts are recognize expense and liability accounts are recognize expense and equity accounts are recognize liability and equity account are recognized
there are general features that ias 1 require every entity that its financial statement
Using practical examples describe how International Accounting Standard 23 would apply to Assets in your company?
Demonstrate how to identify and account for debt investments classified forreporting purposes as trading securities
Under the fair value option for debt investment, entities report all changes in fair value in a.Equity b.Other comprehensive income c.Income or other comprehensive income d.Income
Match the words with the term. 12345 current liability 1. taxes payable 2. share capital 3. inventories 4. land 5. trademark
5. A contract that will be settled in the entity’s own equity instruments and under which the entity is obliged to deliver a variable number of the entity’s own equity instruments with a total value equal to a fixed amount is classified as a financial liability in the financial statements of the entity. True or False
Which of the following assets are initially and subsequently measured at Fair Value? Biological assets Available for sale securities Inventories Property and Equipment Held for trading securities Intangible assets I and II only I, II, III and V only I, II and III only I, II, IV, and V only
Under the conceptual framework for international financial reporting a non-controlling interest fits the definition of: a liability. an equity item. an asset.
For each of the following eight components of the framework for financial reporting, identify whether the component relates to (i) the demand for financial information from potential users or (ii) the approach the accounting profession is taking to supply information to meet that demand. Complete the table below. Concept Demand/Supply a. User needs b. Measurement criteria C. Assumptions for the preparation of financial statements d. Objectives of financial reporting e. Definitions of the elements of financial statements f. Recognition criteria g. Constraints h. Desirable qualitative characteristics
What are comparative financial statements? What issue is introduced when entities present information in comparative format?
4. Entity A issues an instrument that is re-purchasable by delivering cash or another financial asset. However, Entity A's and financial liability remain unaltered. delivo 1ssues an instrument that is re-purchasable by