General concepts about IFRS9 Financial instrument

Is Prepaid rent a Financial asset?

Answer:

No, Prepaid rent is not a financial asset 

Reason:
A financial asset can be classified into the following categories:

-Cash
-Right to receive cash
-shares of another company 
-Derivative

Point to ponder

Any Asset which converts into cash afterward is Financial asset, if it converts into expense it is not a financial asset.

Since Prepaid Rent gradually converts into expense so it is not a financial asset.

Categories: financialasset, isprepaidrentafinancialasset