Many securities are financial instruments under the definitions established in Section 386 of the CICA financial instrument is any contract that gives rise to both a finan cial asset of one party and a financial liability or equity instrument of another party. In th context of intercorporate investments, financial assets are defined as any contractual righ to receive cash or another financial asset from another company. Bonds and share invest ment meet this definition. Investments that are financial instruments are classified according to the rules in propsose Section 3855, “Financial Instruments—Recognition and Measurement.” These classifications an rules are brand new, effective in any fiscal year beginning after.
