Brief analysis of IFRS 9 Financial instument

Financial Instrument (IFRS 9)

A contract that gives rise to Financial assets of one party and Financial liability and Financial liability and equity for another party.

One party is The ISSUER( who issue either Debt security or equity security)

And the Other is the INVESTOR( who invest either in Debt security or equity security)

Debt security = Loans/debentures

Equity security =Shares

Then we have FINANCIAL ASSET, FINANCIAL LIABILITY, EQUITY

FINANCIAL ASSET= Right to receive cash, Shares of another company and derivative

FINANCIAL LIABILITY= Obligation to pay

Equity= Shares

Categories: equity, financialinstrument, ifrs9, investor, shares