A financial asset

The financial assets include cash, loans granted, the securities in the portfolio of the bank, accounts receivable, repayable in cash, etc. For example, a bank loan granted to the enterprise, reflected in the statements of the bank as a financial asset (the amount of debt the company owed to the bank or its receivables), and the reports of the company - as a financial liability (long-or short-term loans), which is repayable by the company in cash. Financial liabilities include deposits attracted in funds received by the bank loans, bonds issued by the bank, etc. The financial obligation entitles either party to settle the obligation in cash or another financial instrument. The tool of capital - is any contract that certifies the residual portion of the assets of the enterprise after deducting all its liabilities. An example of the equity is common or preferred stock. The bank was organized in the form of joint-stock company, attract equity capital through the issue and placement of its shares. Paid by shareholders of the bank shares are placed in the balance sheet as share capital. The above instruments are called primitive. In addition to the primitive, there are financial derivatives. These include forwards, futures contracts, the contracts "swap" and options. Derivative usually has a notional amount, may be, for example, the amount of currency, the number of shares specified in the contract. However, the derivative instrument does not require the holder or seller to invest or receive the notional amount at the beginning of the contract. Topic: The role of accounting in the management of the bank, its types and destination