As per the definitions of financial asset under IFRS 9, one of them is a contract that will or may be settled in the entity's own equity instruments.
I'm quite confused that under what circumstances will an entity have a financial asset that allows itself to receive its own equity instrument?
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Financial asset that will or may be settled in own equity instruments
5y ago#1A bit over the top for this exam. Keep it simple!
But, if you are interested, Deloitte have a guide:
https://www2.deloitte.com/content/dam/Deloitte/us/Documents/audit/ASC/Roadmaps/us-aers-a-roadmap-to-accounting-for-contracts-on-an-entitys-own-equity.pdf
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