Items that are not financial instruments (2024)

FAQs

Items that are not financial instruments? ›

Examples of non-financial assets include tangible assets, such as land, buildings, motor vehicles, and equipment, as well as intangible assets, such as patents, goodwill, and intellectual property.

A nonfinancial asset is an asset that derives its value from its physical traits. Examples include real estate and vehicles. It also includes all intellectual property, such as patents and trademarks.

The following are examples of items that are not financial instruments: intangible assets, inventories, right-of-use assets, prepaid expenses, deferred revenue, warranty obligations (IAS 32. AG10-AG11), and gold (IFRS 9. B. 1).

Physical assets, for example inventories, property, plant and equipment. Control of these assets creates an opportunity to generate an inflow of cash or another financial asset, but it does not give rise to a present right to receive cash or another financial asset.

A financial asset is a liquid asset whose value comes from a contractual claim, whereas a non-financial asset's value is determined by its physical net worth. Non-financial assets cannot be traded, yet financial assets frequently are. The former, over time, will depreciate in value, whereas the latter does not.

The non-financial corporations' sector includes, for example, incorporated energy and resource firms, agriculture, forestry and fishing businesses, manufacturers, companies engaged in distribution of products (wholesalers and retailers), entities engaged in construction and real estate, transportation services, and ...

Non-financial non-produced assets consist of natural resources (e.g. land, mineral and energy reserves, non-cultivated biological resources such as virgin forest, water resources, radio spectra and others), contracts, leases and licences as well as goodwill and marketing assets.

Non-financial assets may be tangible (also known as , e.g., land, buildings, equipment, and vehicles) but also intangible (e.g., patents, intellectual property, data).

Non-financial liabilities may also denote liabilities that do not arise from financial transactions. Examples of such liabilities include liabilities to employees, tax liabilities, social security payables, employers' liability insurance premiums, etc.

Common examples of financial instruments include stocks, exchange-traded funds (ETFs), mutual funds, real estate investment trusts (REITs), bonds, derivatives contracts (such as options, futures, and swaps), checks, certificates of deposit (CDs), bank deposits, and loans.

Are accounts receivable considered financial instruments? ›

The term “financial instruments” covers both financial assets and financial liabilities, from straightforward cash to embedded derivatives. For example, all trade receivables, payables, bank loans, inter-company balances and debts and shares in another entity fall within the scope of this standard.

This means that a prepayment, for instance, is not a financial asset, because in this case, there is a right to receive a future good or service, not cash or a financial asset.

(C) Financial instrument The term “financial instrument” includes stocks and other equity interests, evidences of indebtedness, options, forward or futures contracts, notional principal contracts, and derivatives.

Non-Financial Records means the non-financial records of the Corporate Group, including formulas, plans, specifications, data, surveys, contracts and non-financial documents; business, engineering and consulting reports; research and development information, including information relating to Nu-Trax, results and data ...

However, financial data alone may not capture the full picture of the value and potential of a business or project. Non-financial data, such as customer satisfaction, employee engagement, social impact, environmental footprint, and innovation, can provide additional insights and context to the financial analysis.

The financial account is the account of Financial Assets (such as loans, shares, or pension funds). The non-financial account deals with all the transactions that are not in financial assets, such as Output, Tax, Consumer Spending and Investment in Fixed Assets.

A non-financial audit is an independent examination of an organization's non-financial information, such as its internal controls, operations, compliance with laws and regulations, and management systems.