Financial instruments are contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. There are several types of financial instruments including cash, receivables, payables, loans, bonds, derivatives, and equity instruments. Financial instruments are classified and accounted for differently depending on whether they are assets, liabilities, or equity. Financial assets are classified as financial assets at fair value through profit or loss, held-to-maturity, loans and receivables, or available-for-sale. Financial liabilities are classified as either financial liabilities at fair value through profit or loss or other financial liabilities. The classification of financial instruments affects how they are measured and presented in financial statements
Financial statements are written records that convey the business activities and the financial performance of a company.
Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
2. Financial Instrument is any contract that gives rise to financial asset of one entity and a financial
liability or equity instrument of another entity.
Financial Asset
•Cash;
•An equity instrument of another entity;
•A contractual right-
a. To receive cash or another financial asset from another entity; or
b. To exchange financial asset or financial liability with another entity under conditions
that are potentially favorable to the entity.
example: A call option which is in the money is financial asset for the holder.
• A contract that will or may be settled in entities own equity instrument that is:
a. A non derivative for which the entity is or may be obliged to receive variable number of
its own equity instrument; or
b. A derivative that will or may be settled other than by exchange of fixed amount of cash
or another financial asset for a fixed number of entity’s own equity instrument
(in other words number of shares or value share at the time of settlement should be
variable.)
3. Financial liability is contractual obligation to:
• Deliver cash or another financial asset to another entity; or
• Exchange financial asset or financial liability of another entity under the condition which are
potentially unfavorable to the entity.
example: A call option which is in the money is financial liability for the writer of option.
• A contract that will or may be settled in entities own equity instrument that is:
a. A non derivative for which the entity is or may be obliged to deliver variable number of
its own equity instrument; or
b. A derivative that will or may be settled other than by exchange of fixed amount of cash
or another financial asset for a fixed number of entity’s own equity instrument
(in other words number of shares or value share at the time of settlement should be
variable.)
If the number of equity shares required for settling the obligation varies with changes in fair
Value such that the total fair value of equity shares transferred is always equal to amount of
Contractual obligation, then the holder of the obligation is not exposed to any gain or loss from
The price of the equity share. Therefore such an obligation should be accounted as liability.
Otherwise it’s an equity.
4. An Equity instrument is an instrument which, to the holder of the instrument, gives the residual
Interest in the asset of the entity after deducting all of its liabilities.
An instrument is a liability when issuer is or can be required to deliver either in cash or another
Financial asset to holder of the instrument.
An instrument is an equity when it represents residual interest in the net assets of issuer.
For example
In the following cases the financial instrument is treated as liability:
• If the issuer can or will be forced to redeem the instrument,
• If the choice of settling the financial instrument in cash or otherwise is contingent upon
circumstances beyond the control of both issuer and the holder,
• Where the holder has the option to put, the rights inherent in the instrument back to the
issuer for cash or another financial instrument.
Thus redeemable preference shares with fixed dividend will be classified as liability.
5. Examples of Financial Instruments:
o Trade and other receivables
o Cash and other cash equivalent
o Trading liabilities
o Trade and other payables and accruals
o Current and long term borrowing
o Bonds and debentures
o Derivative instruments
o Originated and purchased loans
Examples of contracts that are not Financial Instruments:
o Own equity instruments
o Intangible assets
o Non-monetary and physical assets
o Weather derivatives
o Insurance contracts
o Prepaid expenses
o Warranty obligation as it is settled by delivery of goods or services and not by cash or
another financial asset
o Any contract which is settled otherwise than in cash or another financial asset.
6. Compound financial instrument
• It is instrument which contain elements of debt as well as equity. Eg convertible debenture
• It must be split into liability and equity component for accounting purpose.
• The liability element is determined by fair valuing cash flows excluding any equity
component and balance is assigned to equity.
Example: 200, 5% convertible debentures issued @ Rs100 per debenture. Option of conversion
can be exercised at end of four year. Prevailing market rate for similar debt without
conversion option is 7%(assumed for calculation purpose)
Calculation carrying amount of liability portion Rs
Present value of principal[ 20000* DF(7%, 4th year)] 15260
Present value of interest[1000*AF(7%, 4 year)] 3387
18647
Proceeds of issue 20000
Less: liability portion 18647
Equity portion 1353
7. Derivative Instrument
Characteristics of Derivative instrument:-
It‟s value depends on values of underlying item viz interest rate, financial instruments
price, commodity price, credit rating, foreign exchange rate etc.
It requires no or very nominal initial net investment
It is settled at a future date.
Types of derivatives:
Forwards are contracts to purchase or sell a specific quantity of a financial instrument
with delivery or settlement on a pre-agreed future date.
Swaps are contracts to exchange cash flows as of specified dates based on a notional
amount.
Futures are similar to forwards contracts.
Options are contracts that give the purchaser the right, but not the obligation to buy or
sell a specified quantity of a particular financial instrument.
Embedded derivative:
An embedded derivative is a derivative instrument which is combined with a non
derivative host contract.
Example: convertible debenture which is convertible into equity shares
Host contract - debenture
Embedded derivative - conversion option.
8. Scope of AS 30:
The scope of the standard is very wide. So here is the negative list i.e. the financial
instruments which are out of scope of this standard
Interest in subsidiaries
Interest in joint ventures
Interest in associates
Obligation arising under insurance contracts
Employee benefit plans
Right and obligation under lease to which AS-19, “Leases” applies subject to certain
exception
These financial instruments are recognized and measured according to the respective
standards applicable to them.
9. Classifications of Financial Assets and Liabilities:
The recognition, measurement presentation and disclosure in financial liabilities
depends on classification of financial assets and liabilities.
Financial Asset
Fair value through Profit and Loss(FVTPL)
Held to Maturity(HTM)
Loans and Receivable
Available for Sale(AFS)
Financial Liabilities Financial Liabilities at fair value through Profit and Loss
Other financial liabilities
10. Financial assets at fair value through profit and loss(FVTPL)
This category has two sub-category
Financial assets held for trading
A financial asset which is
•Acquired principally for the purpose of selling it in near term
•Part of a portfolio for which there is an evidence of a recent pattern of short-term
profit making
•A derivative unless it is designated as an effective hedging instrument be
accounted for as per hedge accounting
Financial assets designated to the category at inception
There are no restriction on this voluntary designation but it is irrevocable i.e. once
designated, cannot be moved to other category ever.
For an equity instrument to be designated as FVTPL the pre condition is that, it should
have quoted market price in the active equity market.
11. Held to Maturity Investment (HTM)
These are non-derivative financial assets with fixed or determinable payments and
fixed maturity
Entity has positive intent and ability to hold it till maturity.
The intent and ability to hold the asset till maturity should be assessed not only at the
time of acquisition of financial asset but also at each subsequent balance sheet date.
If the entity sells a substantial portion financial assets classified under HTM before
maturity then all the assets belonging to this category need to be reclassified as held
for sale.
Tentative clause: if the financial asset classified under this category is sold before
maturity then for next two years any of the financial assets can not be classified
HTM.
Held to Maturity investments do not include those that:
The entity initially designates as FVTPL
The entity designates as available for sale
Meet the definition of loans and receivables
12. Loans and receivables
These are non-derivative financial assets with a fixed or determinable payment and
are not quoted in an active market.
These assets arise in the course of selling goods or providing services directly to a
debtor with no intention of trading the receivable. In other words they arise in
ordinary course of business.
These items do not include the items which are originated with the intent to be sold in
short term, if so they should be classified as held for trading i.e. FVTPL.
Financial assets which are initially recognized as „Available for sale‟ are excluded from
the definition of „Loan and receivable‟.
If the holder of the financial asset is not able to recover all of its initial investment
(other than because of credit deterioration), it is classified as available for sale or FVTPL
13. Available for sale (AVS)
This is residual category
All financial assets that are not classified in any of the above category are classified in
this category.
An entity also has the right to designate any asset other than a trading one, to this
category at inception.
14. Financial liabitilies at fair value through profit and loss
The category has two sub-categories
Liabilities held for trading
Derivative liabilities that are not accounted for hedging instruments
Obligations to deliver securities or other financial assets borrowed by a short
seller
Financial liabilities that are incurred with the intention to repurchase the in the
near term
Financial liabilities that form part of a part of a portfolio of identified financial
instrument that are managed together and for which there is evidence of a recent
actual pattern of short-term profit taking
Liabilities designated to this category at inception. There are no restriction on this right,
but irrevocable i.e. once designated to this category subsequently it can not be changed.
15. Other financial liabilities
Other financial liabilities like trade payable (creditors), borrowings and customer
deposit accounts constitute the residual category as financial liability.
All liabilities and derivatives other than trading liabilities and derivatives that are
hedging instruments automatically fall under this category.
16. Conditions for reclassification
transfer FVTPL Loans and Held to Available for
Transfer to receivable maturity sale
From
FVTPL Not applicable Not permitted Not permitted Not permitted
Loans and receivable Objective for Not applicable Not applicable Not applicable
holding has
clearly changed
i.e. intended to
be sold in short
term
Held to maturity Not permitted Not permitted Not applicable Permitted as a
result of change
in intention or
ability
Available for sale Evidence of Not applicable Permitted as a Not applicable
pattern of short result of change
term profit in intention or
making ability
17. IF YOU HAVE ANY SUGGESTION, OPINION OR FEEDBACK
PLEASE FEEL FREE TO WRITE US AT
roshankumar.2007@rediffmail.com