A financial asset that does not derive its value from the performance (value change/ price change) of an underlying (asset or variable). Instead, it is an asset with fixed (pre-determined) or determinable payments and fixed maturity, as well as without quotes in an active market. A financial instrument is considered “quoted in an active market” if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and the quoted prices represent actual and regular market transactions that take place on an arm’s length basis. An example is a held-to-maturity investment – which is a financial asset with fixed or determinable payments and fixed maturity that an entity has the “positive intention” and ability to hold to maturity (in order to realize all its interest payments over its lifetime).

Other examples of non-derivative financial assets include loans (loan assets), receivables, and deposits held in banks.