Financial instrument

fearlove on Sun Nov 13, 2011 5:21 pm

A financial instrument is a tradable asset of any kind, either cash; evidence of an ownership interest in an entity; or a contractual right to receive, or deliver, cash or another financial instrument.
According to IAS 32 and 39, it is defined as 'any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity'.

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