A non-derivative financial asset is a financial asset that do not derive value from an underlying asset or derivative contract. Non-derivative financial assets represent standalone financial assets (financial products or instruments) with intrinsic value that is derived from a monetary basis (monetary asset such as cash or cash equivalent– bank deposit) or contractual claim (securities: bonds and stocks). The contractual claim gives a holder the right to receive an amount of money (cash or otherwise) or another financial asset from another party or to exchange financial assets/ financial liabilities with another party under favorable conditions.

Other examples of non-derivative financial assets include:

• Loans.
• Trade receivables and other receivables,
• Cash and cash equivalents.
• Long-term debt.