In accounting, are shareholder advances considered "financial instruments"?

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In accounting, are shareholder advances considered "financial instruments"?

When a shareholder advance is listed as a liability, is it technically a financial instrument?

I know that loans and receivables are not, but financial obligations to deliver cash are.

So, is it a loan, or an obligation?

2007-07-05 05:36:18 · 2 answers · asked by ct 4 in Business & Finance ➔ Corporations

2 answers

They ARE financial instruments. Read paras 11 and 12 of the attached FRS 32 which is almost identical to the IFRS on Financial Instruments. Btw, loans and receivables are financial instruments.

Since FRS 32 is closely linked to FRS 39, I've also given you the link.

2007-07-05 22:23:26 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋

It is an obligation

2007-07-05 13:45:44 · answer #2 · answered by Anonymous · 0⤊ 0⤋