A derivative financial instrument is classified as a financial liability if it will or may be settled other than by the exchange of a fixed amount of cash (or another financial asset) for a fixed number of the entity’s own equity instruments. This is often referred to as the "fixed-for-fixed" condition.

Financial instrument is defined as a contract that gives rise to:An asset of one entityA liability of another entityA financial asset of one entityA financial liability of another  entityAnswer :i, ii   i, iii   ii, iiii   iii, iv

As an exception to the general definition of a _____________, an instrument that meets the definition of a financial liability is nevertheless classified as an equity instrument if it has all the features and meets the conditions in paragraphs 16A and 16B.

Financial derivatives' payoffs are associated with .a.securities that will be released in the futureb.Securities that have already been issuedc.the interest rate volatilityd.Government rules defining acceptable return rates.

An issuer of a financial instrument must classify the instrument (or its component parts) on initial recognition as a financial liability, a financial asset or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, a ___________________and an equity instrument.

A financial asset is recognised whenAnswer : risks and rewards are transferred  it is probable that future economic benefits will flow to the entity and the cost of the instrument can be measured reliably   control is obtained   the entity becomes a party to a contractual provision of the instrument