Relevant Accounting 
    Standards
                       LKAS 39               SLFRS 9 
                        Financial             Financial 
                      Instruments:          Instruments 
                     Recognition and      (Replacement of 
                      Measurement            LKAS 39)
         LKAS 32                Accounti                   SLFRS 7 
          Financial                                        Financial 
        Instruments:                ng                    Instruments: 
        Presentation             Standar                  Disclosures
                                  ds on 
                                Financia
                                      l 
                                 Instrum
                                   ents                                2
    Financial Instrument 
     Any contract that gives rise to both a 
     financial  asset  of  one  entity  and 
     financial         liability      or       equity 
     instrument of another entity. 
                                                          3
                                          e.g. deposits of cash, 
                          Primary          debt investments, 
                                           equity investments, 
                                          receivables/payables
       Types of                               e.g. options, 
       Financial          Derivative         forwards/futures, 
     Instruments                             swaps, caps and 
                                                collars
                                              e.g. convertible 
                          Compound             bonds, equity 
                                              indexed notes, 
                                             exchangeable debt
                                                          4
          Financial Asset 
            Is any asset that is:
            a)     Cash;
            b) An equity instrument of another entity; 
            c)     A contractual right:
                 i.     to receive cash or another financial asset 
                        from another entity; or 
                 ii.    to  exchange  financial  assets  or  financial 
                        liabilities           with          another             entity          under 
                        conditions  that  are  potentially  favourable 
                        to the entity: or
                                                                                                               5
     Types of Financial Assets
   1. Financial assets at fair value through profit or loss - financial 
      assets  that  are  either  classified  as  held  for  trading;  or  are 
      designated as such on initial recognition.
   2. Held-to-maturity  investments - financial  assets  with  fixed  or 
      determinable payments and fixed maturity, other than loans and 
      receivables, for which there is a positive intention and ability to 
      hold to maturity and which have not been designated as ‘financial 
      assets at fair value through profit or loss’ or as ‘available-for-sale.’
   3. Loans  and  receivables  –  non-derivative  financial  assets  with 
      fixed or determinable payments that are not quoted in an active 
      market  and  do  not  qualify  as  ‘trading  assets’  and  have  not 
      designated as ‘financial assets at fair value through profit or loss’ 
      or as ‘available-for-sale.’
   4. Available-for-sale  financial  assets  -  non-derivative  financial 
      assets  that  are  designated  as  ‘available-for-sale’  or  are  not 
      classified as ‘loans and receivables’, held-to-maturity investments’, 
      or ‘financial assets at fair value through profit or loss’.
                                                                             6