Quick Answer: What Are The Classification Of Financial Asset?

What are three types of assets?

Different Types of Assets and Liabilities?Assets.

Mostly assets are classified based on 3 broad categories, namely – …

Current assets or short-term assets.

Fixed assets or long-term assets.

Tangible assets.

Intangible assets.

Operating assets.

Non-operating assets.

Liability.More items….

Is gold a financial instrument?

Is monetary gold a financial instrument (like cash)? No. Similar to gold bullion, monetary gold is not a financial instrument as there is no contractual right to receive cash or another financial asset inherent in the item.

How do you classify assets and liabilities?

Classification of Assets and Liabilities. Difference between assets and liabilities is assets gives you future financial benefit, and on the other hand, liabilities will give you a future obligation. The proportion of assets to liabilities should always be higher.

What is a financial asset under IFRS?

Financial asset: any asset that is: cash. an equity instrument of another entity. a contractual right. to receive cash or another financial asset from another entity; or.

What are the two basic types of financial assets?

Types of Financial AssetsCash and the Cash Equivalents. … Fixed Deposits. … Equity Shares. … Preference Shares. … Debentures. … Accounts Receivable. … Mutual Funds. … Derivatives.More items…

What are the three types of financial assets?

Money, stocks and bonds are the main types of financial assets. Each is something you can own, and each has some amount of financial value.

What are the most common financial instruments?

There is no distinction between ‘basic’ or ‘other’ financial instruments. The most common basic financial instruments are cash, trade debtors, trade creditors and most bank loans. (3)a combination of a positive or a negative fixed rate and a positive variable rate.

How are financial assets classified under IFRS 9?

IFRS 9 divides all financial assets that are currently in the scope of IAS 39 into two classifications – those measured at amortised cost and those measured at fair value. … For debt instruments the FVTOCI classification is mandatory for certain assets unless the fair value option is elected.

What are the characteristics of financial assets?

What are the characteristics of financial assets ? Moneyness. The moneyness of the financial assets implies that they are easily convertible to cash within a defined time and determinable value. … Divisibility & Denomination. … Reversibility. … Cash. … Maturity Period. … Convertibility. … Currency. … Liquidity.More items…•

What are basic financial instruments?

Basic financial instruments are defined as one of the following: cash. a debt instrument (such as accounts receivable and payable) commitment to receive a loan that satisfy certain criteria. investments in non-convertible preference shares, and non puttable ordinary shares.

What are different types of financial instruments?

Financial instruments may be divided into two types: cash instruments and derivative instruments.Cash Instruments.Derivative Instruments.Debt-Based Financial Instruments.Equity-Based Financial Instruments.