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Definition of âfinancial instrumentâ - English Dictionary. See all translations. uk â us â FINANCE, MONEY. âº a financial asset that can be bought or sold, such as a bond, share, or other security (= an investment that can be traded): There is a simple relationship between the price of a financial instrument and its yield.
Over time, the FASB and the IASB took different approaches to various aspects of the accounting for financial instruments. In 2009, the IASB issued IFRS 9, Financial Instruments, which provides guidance on classification and measurement of financial assets.