Publication: Review of Polish and International Accounting Standards in Scope of Financial Instruments
Date
2014-07
ISSN
Published
2014-07
Author(s)
Bakalarski, Tomasz
Abstract
Detailed principles of accounting for
financial instruments have been prescribed in Financial
Instruments Regulation, but some general principles in that
area have also been outlined in the Accounting Act.
According to article 3, paragraph 1, point 23 of the
accounting act, financial instrument is defined as any
contract giving rise to financial assets of one entity and a
financial liability or an equity instrument of another
entity, on condition that the contract concluded by two or
more parties clearly results in economic effects,
irrespective of whether the execution of contractual rights
or obligations in unconditional or conditional. Financial
assets include: monetary assets (assets in the form of
domestic currency, foreign currencies and foreign exchange
instruments and other financial assets, in particular
accrued interest on financial assets, equity instruments
issued by other entities, and contractual right to receive
monetary assets or to exchange financial instruments with
another entity under favorable conditions. Equity
instruments are defined as contracts which give right to
assets of an entity which remain after satisfying or
securing all its creditors, as well as an obligation of an
entity to issue or deliver its own equity instruments, in
particular shares, share options or warrants.
Citation
“Bakalarski, Tomasz. 2014. Review of Polish and International Accounting Standards in Scope of Financial Instruments. © World Bank, Vienna. http://openknowledge.worldbank.org/handle/10986/24802 License: CC BY 3.0 IGO.”