Conceptual Approaches in Financial Instruments Sphere

Abstract

The article examines the conceptual approaches in the sphere of financial instrumentsaccording to international regulations. The article analyzes the conceptual boundaries of financialinstruments, their classification into financial asset, financial liability and equity instrument. Anexplicit illustration of how to recognize the financial asset and financial liability provides financialstatement users more opportunities on how to understand the concept of financial instrument. Theconclusion is that with the complex confrontation of financial instruments, a more accurate andclear accounting is needed in order to exclude the mystery witch surrounds them.

Keywords

• financial instruments
• financial asset
• financial liability
• equity instrument