A futures contract is an example of a financial instrument where the net amount of a financial asset and a financial liability may be presented in the statement of financial position.

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A futures contract is a financial instrument where both parties agree to buy or sell an underlying asset at a predetermined price and date in the future. As a result, it represents both a financial asset and a financial liability for the parties involved, which can be presented as such in the statement of financial position.

A Futures Contract Is an Example of a Financial Instrument