This case illustrates how to apply the definition of a financial instrument and the scope of IAS 32.
Facts Company A is evaluating whether each of these items is a financial instrument and whether it should be accounted for under IAS 32:
(a) Cash deposited in banks
(b) Gold bullion deposited in banks
(c) Trade accounts receivable
(d) Investments in debt instruments
(e) Investments in equity instruments, where Company A does not have significant influence over the investee
(f) Investments in equity instruments, where Company A has significant influence over the investee
(g) Prepaid expenses
(h) Finance lease receivables or payables
(i) Deferred revenue
(j) Statutory tax liabilities
(k) Provision for estimated litigation losses
(l) An electricity purchase contract that can be net settled in cash
(m) Issued debt instruments
(n) Issued equity instruments
Required
Help Company A to determine (1) which of the above items meet the definition of a financial instrument and (2) which of the above items fall within the scope of IAS 32.