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For our ancestors who didn’t have the benefit of a world map...

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For our ancestors who didn’t have the benefit of a world map...

Rizom - April,2018
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For our ancestors who didn’t have the benefit of a world map...

Rizom - April,2018
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For our ancestors who didn’t have the benefit of a world map...

Rizom - April,2018
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Dr. Doctor 2017-05-11 19:06
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Financial instrument

Financial instrument

From Wikipedia, the free encyclopedia
  (Redirected from Financial instruments)
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International Accounting Standards
IAS 32 and 39 define a financial instrument as "any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity".[1]

Types[edit]

Financial instruments can be either cash instruments or derivative instruments:

Alternatively, financial instruments may be categorized by "asset class" depending on whether they are equity-based (reflecting ownership of the issuing entity) or debt-based (reflecting a loan the investor has made to the issuing entity). If the instrument is debt, it can be further categorised into short-term (less than one year) or long-term. Foreign exchange instruments and transactions are neither debt- nor equity-based and belong in their own category.

Asset classInstrument type
SecuritiesOther cashExchange-traded derivativesOTC derivatives
Debt (long term)
>  1 year
BondsLoansBond futures
Options on bond futures
Interest rate swaps
Interest rate caps and floors
Interest rate options
Exotic derivatives
Debt (short term)
≤ 1 year
Bills, e.g. T-bills
Commercial paper
Deposits
Certificates of deposit
Short-term interest rate futuresForward rate agreements
EquityStockN/AStock options
Equity futures
Stock options
Exotic derivatives
Foreign exchangeN/ASpot foreign exchangeCurrency futuresForeign exchange options
Outright forwards
Foreign exchange swaps
Currency swaps

Some instruments defy categorization into the above matrix, for example repurchase agreements.

Measuring gain or loss[edit]

The gain or loss on a financial instrument is as follows:

Instrument Type
CategoriesMeasurementGains and losses
AssetsLoans and receivablesAmortized costsNet income when asset is derecognized or impaired (foreign exchange and impairment recognized in net income immediately)
AssetsAvailable for sale financial assetsDeposit accountfair valueOther comprehensive income (impairment recognized in net income immediately)

See also[edit]

References[edit]

  1. Jump up ^ International Accounting Standard (IAS) 32.11
  2. Jump up ^ Understanding Derivatives. Federal Reserve Bank of Chicago. Accessed August 2, 2015.

External links[edit]



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Dr. Doctor

 

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