Home > Terms > English, UK (UE) > Financial liability
Financial liability
Any liability that is: (a) a contractual obligation: (i) to deliver cash or another financial asset to another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or (b) a contract that will or may be settled in the entity’s own equity instruments and is: (i) a non-derivative for which the entity is or may be obliged to deliver a variable number of the entity’s own equity instruments; or (ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose the entity’s own equity instruments do not include instruments that are themselves contracts for the future receipt or delivery of the entity’s own equity instruments.
- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Financial services
- Category: Accountancy
- Company:
- Product:
- Acronym-Abbreviation:
Other Languages:
Member comments
Terms in the News
Featured Terms
Leading from behind
A phrase that was reportedly used by the Obama White House to describe the U.S. actions in Libya as "leading from behind." The phrase has ...
Contributor
Featured blossaries
Browers Terms By Category
- Satellites(455)
- Space flight(332)
- Control systems(178)
- Space shuttle(72)
Aerospace(1037) Terms
- Software engineering(1411)
- Productivity software(925)
- Unicode standard(481)
- Workstations(445)
- Computer hardware(191)
- Desktop PC(183)
Computer(4168) Terms
- General astrology(655)
- Zodiac(168)
- Natal astrology(27)
Astrology(850) Terms
- General seafood(50)
- Shellfish(1)