(b) Consider the following accounts from Balance Sheet:
(i) Accounts receivable
(ii) Investment in a listed company’s shares
(iii) Accounts payable
(iv) Tax payable
(v) Issued capital
Required: (Total maximum words for (b): 140)
• Classify each of the above accounts into Financial Asset (FA), Financial Liability (FL), or
Equity instrument in accordance with NZ IAS 32. For those accounts that are neither
FA, FL nor Equity instrument, state “Not Applicable” or “N/A”. and
• Explain the reasons for each of your classifications.