“Financial instruments are an important subject in accounting; there are several standards relating to it. The best standard identifies and explains the financial instrument is IAS32, IAS 39 and IFR7 and IFRS9. 4.1 IAS 32 Financial Instruments: Disclosure and Presentation In 2005, the International Accounting Standard Board (IASB) issued IAS32, which was the first standard relating to financial instruments and dealt with the disclosure and presentation of instruments financial. The objective of this standard is to provide information to improve users' understanding of the importance of financial instruments. Thus, they can better understand the performance and financial position of the entity and users can assess the amount and timing of future cash flows linked to financial instruments. . IAS32 classifies and identifies financial instruments as financial assets, financial liabilities, derivatives and equity instruments and pays much attention to explaining the differences between financial liability and equity instrument in order to avoid doubt, instruments will be classified as equity instruments if both have elements. has occurred: (a) if the instrument is not included in the contractual obligation (b) if the instrument is settled in the equity instrument of the issuer. It requires that the classification of income statement and balance sheet items correspond to their balance sheet classification, such as interest expense, interest income, dividends and gains and losses. IAS32 has capitalized requirements for offsetting financial assets and financial liabilities so that the entity can offset financial assets and financial liabilities where the entity has an enforceable legal right to offset and intends either settle on a net basis or depend on assets. IAS32 contains a group of requirements...... middle of paper ...... issued IFRS7. The objective of this standard is to provide information and disclosures in financial statements so that users of these financial statements can understand the importance of the financial instrument, assess the risk associated with financial instruments, identify the nature of risk and what is the extent of risk arising from financial instruments and they can understand the performance and financial position of the entity. This standard not only requires the disclosure of quantitative information such as market risk and liquidity risk, but it also requires the disclosure of qualitative information on risk exposure arising from financial instruments. For example, the entity must disclose objectives, policies and management plans to manage risks so that all such information and disclosures help users make decisions. These corrections are