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<h1>Understanding Financial Instruments: Key Points of Ind AS 109, Ind AS 32, and Ind AS 107 Explained</h1> Ind AS 109 covers the recognition, derecognition, classification, measurement, and hedge accounting of financial assets and liabilities. Ind AS 32 focuses on the presentation of financial instruments, including classifying them as liabilities or equity and the netting or offsetting of these instruments. Ind AS 107 pertains to the disclosure requirements for financial instruments. A financial instrument is defined as a contract that creates a financial asset for one entity and a financial liability for another. Contracts, whether written or oral, are agreements enforceable by law between two or more parties.