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Which of the following is NOT a financial asset under Ind AS 32?
AInventories of finished goods held for sale in the ordinary course of business
BCash and bank balances held in a current account
CInvestment in equity shares of another listed company
DTrade receivables arising from sale of goods on credit
Answer & Solution
Correct answer: A. Inventories of finished goods held for sale in the ordinary course of business
Inventories generate cash only upon sale — control over inventory is not a present contractual right to receive cash or another financial asset. Trade receivables, equity investments in other entities, and cash all give rise to (or are themselves) present rights to receive cash, satisfying the financial-asset definition.
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