The AASB 132 Financial Instruments: Presentation definition of a financial asset does not include any asset that is:
A) an equity instrument of another entity.
B) a contractual right to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity.
C) a contract that will be settled in the entity's own equity instruments.
D) a contractual obligation to deliver cash or another financial asset to another entity.

Question

Quizplus · Accepted Answer

A financial asset includes equity instruments of another entity, contractual rights to exchange financial assets or liabilities under favorable conditions, and contracts settled in an entity's own equity instruments. A contractual obligation to deliver cash or another financial asset to another entity defines a financial liability, not a financial asset.

The AASB 132 Financial Instruments: Presentation Definition of a Financial