351 Financial asset  is any asset that is: Goodwill  is the amount of future economic benefits arising from  assets that are not capable of being individually identified and  separately recognized as an asset in a business combination. General account investments  are investments of which the  financial risks are not borne by the policyholder. Guaranteed benefits  are payments or other benefits to which  a particular policyholder or investor has an unconditional right  that is not subject to the contractual discretion of the issuer. Hedge effectiveness  is the degree to which changes in the fair  value or cash flows of the hedged item that are attributable to  a hedged risk are offset by changes in the fair value or cash  flows of the hedging instrument. Incremental cost  is one that would not have been incurred if the  entity had not acquired, issued or disposed of a financial  instrument. Insurance asset  is an insurer’s contractual right under an  insurance contract. Insurance contract  is a contract under which one party (the  insurer) accepts significant insurance risk from another party (the  policyholder) by agreeing to compensate the policyholder if a  specified uncertain future event (the insured event) adversely  affects the policyholder. Insurance liability  is an insurer’s contractual obligation under  an insurance contract. Insurance risk  is a risk, other than financial risk, transferred  from the holder of a contract to the issuer. Interest rate risk  is a market risk, namely the risk that the value  of a financial instrument will fluctuate due to changes in market  interest rates. Joint control  is the contractually agreed sharing of control over  an economic activity, which exists when the strategic and  operating decisions relating to the activity require the unanimous  consent of the parties sharing control. Liability adequacy testing  is an assessment of whether the  carrying amount of an insurance liability needs to be increased (or  the carrying amount of related deferred policy acquisition costs or  related intangible assets decreased) based on a review of future  cash flows. Liquidity risk  is the risk that an entity will encounter difficulty in  raising funds to meet commitments associated with financial  instruments. Financial risks  are risks of a possible future change in one or  more of the following variables: a specified interest rate,  financial instrument price, commodity price, foreign exchange  rate, index or prices or rates, credit rating or credit index or other  variable, provided in the case of a non-financial variable, that the  variable is not specific to a party to the contract. Firm commitment  is a binding agreement for the exchange of a  specified quantity of resources at a specified price on a specified  future date or dates. Foreign currency  is a currency other than the functional  currency of an entity within the Group. Foreign operation  is an entity that is a subsidiary, associate,  joint venture or branch of a reporting entity within the Group, the  activities of which are based or conducted in a country or  currency other than those of the reporting entity. Functional currency  is the currency of the primary economic  environment in which an entity within the Group operates. Financial instrument  is any contract that gives rise to both a  financial asset of one entity and a financial liability or equity  instrument of another entity. Financial liability  is any liability that is: ■ Cash; ■ An equity instrument of another entity; ■ A contractual right to receive cash or another financial asset  from another entity or to exchange financial instruments with  another party under conditions that are potentially favorable;  ■ A contract that will or may be settled in the entity’s own  equity instruments; and is  ■ A non-derivative for which the entity is or may be obliged  to receive a variable number of the entity’s own equity  instruments; or ■ A derivative that will or may be settled other than by the  exchange of a fixed amount of cash or another financial asset  for a fixed number of the entity’s own equity instruments. or ■ A contractual obligation to deliver cash or another financial  asset to another entity or to exchange financial assets or  financial liabilities with another entity under conditions that  are potentially unfavorable to the entity; or ■ A contract that will or may be settled in the entity’s own  equity instruments; and is  ■ A non-derivative for which the entity is or may be obliged to  deliver a variable number of the entity’s own equity  instruments; or ■ A derivative that will or may be settled other than by the  exchange of a fixed amount of cash or another financial asset  for a fixed number of the entity’s own equity instruments.