Presentation of financial instruments

I’ve just watched the video re the above and I’m a bit confused; I have read that where a financial instrument gives one party a choice over how it is settled (e.g. cash or shares) the instrument is a financial asset or a financial liability unless all the alternative choices would result in it being an equity instrument, I also thought that a financial instrument is a financial liability if there is a contractual obligation on the issuer to transfer cash or other financial assets, e.g. redeemable and cumulative irredeemable preference shares are a financial liability not equity as they contain a contractual obligation (to redeem for cash or pay a cash dividend). So I’m confused how the example in the video is classified as just equity, surely it’s like a convertible bond with part equity and part financial liability?