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An entity needs to Pay cash based on its own equity shares , it seems to satisfy definition of financial liability too (obligation to deliver cash). what matter is “cash based on VARIABLE OR FIXED number of own equity instruments ,in case of variable its ifrs-9/ias 32 , if fixed ifrs 2 ]
is this understanding right?
Basis:[ considering contract settled in VARIABLE own equity instruments are accounted under ifrs-9 as FL , not as ifrs 2]
Q2-
Entity needs to pay i) FIXED own equity instruments or ii) Cash based on FIXED equity instrument could be sharebased payment ifrs 2 or equity instrument under ias 32.but if those i) fixed own equity instruments or ii) cash based on fixed own equity instrument were in exchange of Cash or another financial asset (instead of goods and services) , then this transaction would be financial INSTRUMENT under ias 32.
IN that case , cash based will be financial liabilty and equity based will be equity instrument.
However equity based for variable cash will still be financial liabilty as failing “fixed for fixed”
am i getting right?Q-3: if convertible debt is given to supplier of goods/services then it should be treated under ifrs-2 (because it is for Goods/services not for cash/financial asset ), with two portions equity settled and liability settled.right?
Can you please post these as three separate posts and then delete this thread? I’ll then answer each one individually. Thanks
Can’t find option to delete it.consider it deleted. i will post one question per thread.
Thanks a lot
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