AC2101 S1 2014 Seminar 7 Leases (Anil).pptx

derivative instruments forwardfuture options swap etc

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Unformatted text preview: nancial liability or equity instrument of another enterprise *  Primary instruments: A/R, loans, investments, etc. *  Derivative instruments: forward/future, options, swap, etc. (FRS 32:11) Why do firms hold financial instruments? 1.  Trading purposes §༊  Part of normal business activities including hedging (e.g., futures) 2.  Financing purposes 3.  Investing purposes §༊  Applicable FRS depends on the form of investments Ø།  Bonds (FRS 39) Ø།  Shares •  •  •  •  Control (subsidiaries: FRS 27) Significant influence (associates: FRS 28) Joint control (joint ventures: FRS 31) Other share investm...
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This document was uploaded on 02/10/2014.

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