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Financial Instruments Example Q

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Financial Instruments Example Q

  • This topic has 0 replies, 1 voice, and was last updated 8 years ago by Tazz.
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  • May 6, 2017 at 6:23 pm #385133
    Tazz
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    • Topics: 8
    • Replies: 11
    • ☆

    Hi,

    In the course notes, Ex1 for Ch16 -“Equity or Debt” on whether the B shares should be treated as liabilities or equity in the financial statements – gives the answer equity at the back of the notes.
    However, a similar(i think maybe even exact?) scenario in the June 2014 q4 (b) says the B shares should be liabilities.

    Am I missing some information? I’m confused as to why they’re not both the same answer?

    Thank You,

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