Financial Assets - Ind AS - Indian Accounting Standards - Companies Law

Financial Assets Financial Assets meaning A Financial Asset is any asset that is: Cash Bank Balances An equity Instrument of another entity [Ex Investment in equity shares of any entity A contingent right to receive cash [Ex Debtors, Bills Receivable, Investment in debentures of any entity, Investment in Preference Shares of any entity, Loan given etc.] A Contractual right to receive equity instruments of any other entity [Ex- Investment in Convertible debentures/ Preference Shares of any entity etc.] A contract that will or may be settled in the entity s own equity instruments and is: a non-derivative for which the entity is or may be obliged to receive a variable number of the 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 entity s own equity instruments. For this purpose the entity s own equity instruments DO NOT INCLUDE Puttable financial instruments classified as equity instruments, Instruments that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation and are classified as equity instruments, or Instruments that are contracts for the future receipt or delivery of the entity s own equity instruments.