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 >>

debt and equity- TA

This topic has 1 reply, 2 voices, and was last updated 1 year ago by Stephen Widberg.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
August 3, 2021 at 8:49 am #630226
aarti2407
Member
- Topics: 36
- Replies: 8
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?
August 3, 2021 at 4:30 pm #630281
Stephen Widberg
Keymaster
- Topics: 12
- Replies: 2839
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!
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.