By a financial instrument all contractual requirements and obligations are to be understood, which have directly or indirectly the exchange from currencies to the article. The rights and/or obligations resulting from contracts or agreements must be based thereby on financial circumstances.

Internationally the Accounting standard (IAS) and/or internationally Financial reporting standard (IFRS) defines a financial instrument in IAS 32 as follows: A financial instrument is any contract that gives rise ton of A financial ate OF one entity and A financial liability or equity instrument OF more another entity.

Organization

Financial instruments can be divided in accordance with IAS 39 as follows:

Financial net assets

The description of financial net assets taken out of IAS 32 covers 39,11 following positions and rights in accordance with IAS:

• Money and/or cash in hand (cash),
• a own capital funds instrument of another enterprise,
• a contractual right,

To receive currency or another financial net assets from another enterprise in or

to exchange financial net assets or financial debts with another enterprise under potenziell favourable conditions.

• a contract, one will fulfill to that in own own capital funds instruments of the enterprise or can and with that

non-derivative a financial instrument an obligation of the enterprise contains, or to contain can to receive a variable number of own own capital funds instruments.

derivative a financial instrument will be fulfilled in other way or can than by the exchange of firm amount or another financial net assets against a firm number of own own capital funds instruments.

Financial commitments

A financial debt and/or commitment is in contrast to this

• a contractual obligation,

to supply liquid means or another financial net assets to another enterprise.

to exchange financial net assets or financial commitments on possibly unfavorable conditions with another enterprise.

• a contract, that in own own capital funds instruments of the enterprise will be fulfilled or can and with that

non-derivative a financial instrument an obligation of the enterprise contains, or to contain can to deliver a variable number at own own capital funds instruments.

derivative a financial instrument will be fulfilled in other way or can than by the exchange of firm amount or another financial net assets against a firm number of own own capital funds instruments.

Own capital funds instruments

A own capital funds instrument (Equity instrument) is after IAS 32 and IAS 39 a contractual agreement, which has a Residualanspruch at net assets of an enterprise after departure of all obligations to the article. In accordance with IAS 39,9 a derivative is present if with a financial instrument

• the value on a basis object and/or a Underlying (interest rate, share, foreign currency, etc.) is dependent.
• compared with other instruments, which react in similar way to changes of the market conditions, no or only a small net investment is necessary.
• the maturity in the future lies.

End-of-year procedure

The organization of financial instruments is important for the evaluation and balance in the IFRS end-of-year procedure:

• Financial net assets
• Financial obligations
• Own capital funds instruments
• Trade
• Financial net assets, which are to be held up to the
• Loan and demands
• To the sale available financial net assets

Articles in category "Financial instrument"

We found here 5 articles.

Related Websites

We found here 5 related websites.

• Financial capital - Wikipedia, the free encyclopedia
  This article focuses mostly on financial instruments which are not uniformly affected by native currency inflation and which are not guaranteed by a state. ...


• Financial Instrument
  Investopedia.com - The Investing Education Site. Includes the most comprehensive investing dictionary on the web as well as articles and tutorials on nearly ...


• financial instrument Definition
  financial instrument - definition of financial instrument - An instrument having monetary value or recording a monetary transaction.


• Financial instruments - Wikipedia, the free encyclopedia
  Financial instruments package financial capital in readily tradeable forms ... Financial instruments can be categorised according to whether they are cash ...


• Financial instruments - Wikipedia, the free encyclopedia
  Financial instruments can be categorised according to whether they are cash instruments or derivatives of other instruments. Cash instruments can be divided ...