Understanding Financial Instruments - Part 1 https://bit.ly/2b2w55A
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
As simple as the definition appears, it is one of technical areas in financial reporting where even ‘the brave dreads’. The definition is wide and includes cash, deposits in other entities, trade receivables, loans to other entities, investments in debt instruments, investments in shares and other equity instruments.
Read my recent article on this topic published by ICAN. I am a Board Member of ICAN Financial Reporting Faculty on https://bit.ly/2b2w55A