Trusted by millions of Kenyans
LoginRegister
Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

Browse exam papers
Or go directly to:
Class notes Holiday assignments Topical questions Other resources

In the context of international Accounting Standard (IAS) 39 “Financial instruments”. Distinguish between a financial asset and financial liability

In the context of international Accounting Standard (IAS) 39 “Financial instruments”.
Distinguish between a financial asset and financial liability

Answers

Wilfred
1. Financial asset is any asset that is:
a) Cash
b) An equity instrument of another entity
c) A contractual right to receive cash or other financial from another entity.

2. Financial liability: - It is any liability that involves a contractual obligation to deliver cash or another financial asset to another entity or to exchange financial assets/liabilities .with another entity under conditions that is potentially unfavorable to the entity.
Wilfykil answered the question on February 8, 2019 at 05:24

Answer Attachments

Next: Distinguish between a finance lease and an operating lease indicating how they should be treated in the financial statements as per International Accounting Standard (IAS)...

Previous: Mumias Milling Company purchased a grinder 3 years ago at a cost of Sh.3.5 million. The grinder had a life of 8 years at the time...

View more CPA Financial Reporting Questions and Answers  |  Return to Questions Index

Exams With Marking Schemes

Related Questions