rding to AASB 132 Financial Instruments: Presentation, which of the following items would be regarded as a financial liability? Ordinary shares held in another entity. A contractual right to exchange under potentially favourable conditions, an option to purchase shares below the market price. O The right of a depositor to obtain cash from a financial institution with which it has deposited cash. A contract that is a non-derivative for which the entity is obliged to deliver a variable number of its own equity instruments.

rding to AASB 132 Financial Instruments: Presentation, which of the following items would be regarded as a financial liability? Ordinary shares held in another entity. A contractual right to exchange under potentially favourable conditions, an option to purchase shares below the market price. O The right of a depositor to obtain cash from a financial institution with which it has deposited cash. A contract that is a non-derivative for which the entity is obliged to deliver a variable number of its own equity instruments.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter13: Marketable Securities And Derivatives

Section: Chapter Questions

Problem 12E

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5. A contract that will be settled in the entity’s own equity instruments and under which the entity is obliged to deliver a variable number of the entity’s own equity instruments with a total value equal to a fixed amount is classified as a financial liability in the financial statements of the entity. True or False
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