Financial liability

From ACT Wiki
Jump to navigationJump to search
The printable version is no longer supported and may have rendering errors. Please update your browser bookmarks and please use the default browser print function instead.

Financial reporting.

IAS 32 defines a financial liability as liability that is any of the following:


1.

A contractual obligation either to:

  • Deliver cash or another financial asset to another entity; or
  • Exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the reporting entity.


2.

A contract that will or may be settled in the reporting entity's own equity instruments, and is either:

  • A non-derivative for which the entity is or may be obliged to deliver a variable number of the reporting entity's own equity instruments; or
  • A derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the reporting entity's own equity instruments.


See also