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MASB 24 FRS 7 & 132 FINANCIAL INSTRUMENT: DISCLOSURE & PRESENTATION

MASB 24 FRS 7 & 132 FINANCIAL INSTRUMENT: DISCLOSURE & PRESENTATION. FINANCIAL ASSETS FINANCIAL LIABILITY EQUITY INSTRUMENT. DEFINITION. FINANCIAL INSTRUMENT Any contract that give rise to BOTH a financial asset of the enterprise and financial liability OR equity of ANOTHER enterprise.

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MASB 24 FRS 7 & 132 FINANCIAL INSTRUMENT: DISCLOSURE & PRESENTATION

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  1. MASB 24 FRS 7 & 132 FINANCIAL INSTRUMENT: DISCLOSURE & PRESENTATION FINANCIAL ASSETS FINANCIAL LIABILITY EQUITY INSTRUMENT

  2. DEFINITION FINANCIAL INSTRUMENT • Any contract that give rise to BOTH a financial asset of the enterprise and financial liability OR equity of ANOTHER enterprise

  3. DEFINITION FINANCIAL ASSET • Cash • Contractual right to receive cash or another financial asset from another enterprise • Contractual right to exchange financial instrument with another enterprise under condition that potentially favourable; or • Equity instrument of another enterprise

  4. DEFINITION • EQUITY INSTRUMENT • any contract that evidences a residual interest in the assets of an enterprise after deducting all of its liabilities

  5. DEFINITION FINANCIAL LIABILITY Any liability that is a contractual obligation • To deliver cash or another financial asset to another enterprise; or • To exchange financial instruments with another enterprise under condition that are potentially unfavourable

  6. REPORTING REQUIREMENT FOR FINANCIAL LIABILITY • COMPANIES ACT 1965 • To disclose separately long term and short term • Debentures • Bank loans and overdraft • Liabilities ( other than debentures , bank loans and overdraft) • Other amounts borrowed without security • Disclose the details of the contractual terms

  7. REPORTING REQUIREMENT FOR FINANCIAL LIABILITY FRS 101 Para 51: An entity shall present current and non-current liabilities as separate classifications on the face of its bal. sheet (except when presentation based on liquidity provides reliable and > relevant info See Para 54 & 55.)

  8. Continue….. Para 68: Information to be presented on the face of bal. sheet • Financial liabilities • Any provisions • Non-current interest bearing liabilities (E.g. Bonds, Debentures, Loan Stock) • Additional line item (as required by standard. E.g. trade and other payables, liabilities for current tax, deferred tax liabilities)

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