In this section, we’ll explain the accounting of financial instruments. By the end of this section, you’ll be able to develop…
Derivative is a special type of financial instrument. It is a contract between two or more parties which has the…
Rescheduling of debt is a modification in the terms of debt made by the mutual consent of lender and borrower.…
Financial liabilities classified as “financial liabilities at fair value through profit or loss (FVTPL)” are initially recognized at their fair…
A compound financial instrument is a type of financial instruments that has the characteristics of both equity and financial liability.…
Preference shares or preferred stock are shares of a company which give the holders of such shares a preferred right…
Deep-discount bond is a bond that is issued with a significant discount to the investor i.e. cash received on issuance…
Financial liabilities classified as “financial liabilities at amortized cost” are initially recognized at their fair values. Any transaction costs associated…
There are two measurement categories in which financial liabilities are classified: Amortized cost Fair value through profit or loss (FVTPL)…
In previous chapters of this section “Financial Instruments”, we have studied the accounting of financial assets. Now, we’ll learn the…