Crime Against Humanity: the Holy GAAP, 19

A banker gives a loan to a borrower. They sign a loan contract. The contract is a contractual right of the borrower to receive the loan now and a contractual obligation of the banker to deliver the loan now, and a contractual right of the banker to the repayment of the loan in the future and a contractual obligation of the borrower to repay the loan in the future.
How is the loan granted? The borrower must open a checking account, and the banker grants the loan by crediting that account.
By definition, cash comprises cash on hand and demand deposits. Demand deposits include checking accounts, if they’re not even synonymous. Hence, the subject matter of the contract, the loan granted by crediting that account, is cash.
By definition, a financial asset is cash or a contractual right to receive cash, and a financial liability is a contractual obligation to deliver cash. Hence, the cash and contractual rights to receive cash of the contract are financial assets, and the contractual obligations to deliver cash of the contract are financial liabilities.
By definition, a contract that gives rise to a financial asset of one entity, and a financial liability of another entity is a financial instrument. Hence, by definition, that loan contract is a financial instrument.
And, again by definition, a financial instrument is a contract that GIVES RISE to a financial asset of one entity, and a financial liability of another entity…

By dictionary definition, to give rise means, “to be the cause or source of; to produce.”

Crime Against Humanity: the Holy GAAP