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Financial instruments

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Financial instruments

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by Stephen Widberg.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 14, 2022 at 3:46 pm #663062
    ABDULLAHI312
    Participant
    • Topics: 106
    • Replies: 97
    • ☆☆☆

    Hi Stephen,
    Please check if the following transaction(together with the reason I’m providing) is correctly classified in accordance with IFRS 9:
    1. Irredeemable shares with mandatory dividend…no obligation to pay the principal but there is obligation to deliver dividend/cash- Financial liability.
    2. Contract to deliver fixed number of shares… there is no obligation to transfer equal value therefore Financial asset.
    3. Contract to deliver shares for amount equivalent to the contract obligation…uncertainty over changes in share price therefore variable number of shares- financial liability.
    Thanks.

    August 17, 2022 at 4:20 pm #663289
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3428
    • ☆☆☆☆☆

    1 and 3 – agree
    2 – equity (but I think that’s what you meant).

    🙂

    August 19, 2022 at 9:13 am #663440
    ABDULLAHI312
    Participant
    • Topics: 106
    • Replies: 97
    • ☆☆☆

    thanks

    August 19, 2022 at 3:35 pm #663637
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3428
    • ☆☆☆☆☆

    🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Financial instruments’ is closed to new replies.

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