A financial asset is an asset whose value comes from a contractual claim. These assets are frequently traded. Financial assets include the following items:
- Equity of another entity
- A contractual right to receive cash or similar from another entity or a potentially favorable exchange of financial assets or liabilities with another entity
- A contract probably to be settled in the entity's own equity and that is a nonderivative under which the entity may receive a variable amount of its own equity instruments, or a derivative that probably will be settled other than through the exchange of cash or similar for a fixed amount of the entity's equity.
Examples of financial assets are cash, investments in the bonds and equity issued by other entities, receivables, and derivative financial assets.