- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › debt and equity- TA
Economic necessity does not result in a financial liability being classified as a liability.
dear tutor i didnt quite get this line from technical article, “when does debt seem to be equity”?. what does economic necessity mean here? can you possibly explain sentence as a whole with an example?
I think he means that it the business’s intentions to redeem or not redeem are irrelevant. What matters is whether the terms of the instrument could force them to redeem.
Best I can do on that one!