Introduction to Financial Instruments - Ind AS - Indian Accounting Standards - Companies Law

Introduction to Financial Instruments Financial Instruments meaning Any contract which creates a Financial Asset to the entity and a Financial Liability to another entity are called Financial Instruments for the entity. Ind AS 109 Financial Instruments discusses on Recognition and Derecognition of financial assets and financial liabilities; Classification of financial assets and financial liabilities; Measurement of financial assets and financial liabilities; and Hedge Accounting. Ind AS 32 discusses on Financial Instruments Presentation Classification as Liability vs Equity; and Netting/offsetting on Financial Instruments and Ind AS 107 discusses on Financial Instruments Disclosures Meaning of Contract Contract and Contractual refers to An agreement between two or more parties; Usually enforceable by law; Contracts can be in writing or oral.