Financial assets

A financial asset is a non-physical asset whose value is derived from a contractual claim, such as bank deposits, bonds, and . Financial assets are usually more liquid than other tangible assets, such as commodities or real estate, and may be traded on financial markets.

According to the International Financial Reporting Standards (IFRS), a financial asset can be:

Under IFRS, financial assets are classified into four broad categories which determine the way in which they are measured and reported:

For financial assets to be measured at fair value through profit or loss by designation, designation is only possible at the amount the asset was initially recognized at. Moreover, designation is not possible for equity instruments which are not traded in an active market and the fair value of which cannot be reliably determined. Further (alternative) requirements for designation are e.g. at least a clear diminution of a "mismatch" with other financial assets or liabilities, an internal valuation and reporting and steering at fair value, or a combined contract with an embedded derivative which is not immaterial and which may be separated. Regarding financial assets available for sale by designation, designation is only possible at the amount the asset was initially recognized at as well. However, there are no further restrictions or requirements.

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