CHAPTER 10

Financial Instruments

About This Chapter

This is possibly the most difficult topic not only for students but also for standard setters and companies. We are looking at a complex, fast-moving area usually involving significant sums of money. A company may make furniture, grow barley, supply transport, and offer health services, but they all need finance to operate.

They may raise finance internally by their own activities or externally by transactions in various financial markets. External finance is either short-term or long-term. Short-term financial markets, usually less than a year, are often called money markets. Long-term financial markets are capital markets, and include the equity market, the debt market, which includes borrowing ...

Get A Non-Technical Guide to International Accounting now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.