equity

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December 17, 2020 at 12:56 pm #600188
Noah098
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sir why is equity considered as a financial liability for the issuing company if there is no real contractual obligation to pay any dividends or repay capital either?

because unless there is a contractual obligation to pay, no financial instrument becomes a liability.
December 17, 2020 at 2:17 pm #600194
John Moffat
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It is owed to the shareholders. The fact that it is not repaid unless the company is wound up does not stop it being owed to them.

Again, this is financial accounting rather than AFM.
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