Cash equivalents are recorded on the balance sheet under current assets, including the financial investments that can be readily converted into cash. It provides an understanding of the company’s short-term liquidity. The level of cash equivalents indicates whether the company would be able to meet its short term-liability or not.

Identifying the cash-generating unit to which an asset belongs. Identifying the cash-generating unit to which an asset belongs. Recoverable amount and carrying amount of a cash-generating unit. Recoverable amount and carrying amount of a cash-generating unit. Impairment loss for a cash‑generating unit. Impairment loss for a cash‑generating unit

Financial assets get their value from a contractual right and do not necessarily have a physical worth. There are two types of financial assets including current or non-current assets. The common types of financial assets are bank deposits, cash, and cash equivalents, loans, receivables, derivatives, etc. Different types of financial assets are Financial asset A financial asset is defined as any asset that is: zcash; za contractual right: – to receive cash or another financial asset from another entity; or – to exchange financial instruments with another entity under conditions that are potentially favourable; zan equity instrument of another entity; or
Since cash and cash equivalents may be regarded as asset holdings for operations and thus not included in financial assets in some literature (Huang et al., 2021), we also measure corporate financial asset holdings excluding cash and cash equivalents in robustness tests, which is roughly equivalent to the definition of risky financial assets in
Types of Financial Instruments. 1. Cash Instruments. Cash instruments are financial instruments with values directly influenced by the condition of the markets. Within cash instruments, there are two types; securities and deposits, and loans. Securities: A security is a financial instrument that has monetary value and is traded on the stock auVn.
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    • is cash a financial asset