Chapter 43

Financial instruments: Definitions and scope

1 Introduction

2 What is a financial instrument?

2.1 Definitions

2.2 Applying the definitions

2.2.1 The need for a contract

2.2.2 Simple examples

2.2.3 Contingent rights and obligations

2.2.4 Leases

2.2.5 Non-financial assets and liabilities and contracts thereon

2.2.6 Payments for goods and services

2.2.7 Equity instruments

2.2.8 Derivative financial instruments

2.2.9 Dividends payable

3 Scope

3.1 Subsidiaries, associates, joint ventures and similar investments

3.2 Leases

3.3 Insurance contracts

3.3.1 Weather derivatives

3.3.2 Contracts with discretionary participation features

3.4 Financial guarantee contracts

3.4.1 Definition of a financial guarantee contract

3.4.1.A Reimbursement for loss incurred

3.4.1.B Debt instrument

3.4.1.C Form and existence of contract

3.4.2 Issuers of financial guarantee contracts

3.4.3 Holders of financial guarantee contracts

3.4.4 Financial guarantee contracts between entities under common control

3.5 Loan commitments

3.6 Equity instruments

3.6.1 Equity instruments issued

3.6.2 Equity instruments held

3.7 Business combinations

3.7.1 Contingent consideration in a business combination

3.7.1.A Payable by an acquirer

3.7.1.B Receivable by a vendor

3.7.2 Contracts between an acquirer and a vendor in a business combination

3.8 Contingent pricing of property, plant and equipment and intangible assets

3.9 Employee benefit plans and share-based payment

3.10 Reimbursement rights in respect of provisions ...

Get International GAAP 2013: Generally Accepted Accounting Principles under International Financial Reporting Standards now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.