Financial asset classification clarifies included instruments and exclusions for settlement in an entity's own equity instruments.

A Financial Asset includes cash and bank balances, equity instruments of another entity, contingent rights to receive cash, and contractual rights to receive equity instruments of another entity. It also encompasses non derivative and derivative contracts that may be settled in the entity's own equity instruments, except that the entity's own equity instruments exclude puttable instruments classified as equity, instruments obliging delivery of a pro rata share of net assets only on liquidation and classified as equity, and contracts for the future receipt or delivery of the entity's own equity instruments.

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