Sir,for this technical article "https://www.accaglobal.com/ca/en/student/exam-support-resources/professional-exams-study-resources/strategic-business-reporting/technical-articles/debt-equity.html"
"Economic necessity does not result in a financial liability being classified as a liability."
1. What means of this sentence?
Thank you.
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financial liability
6y ago#1I 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!
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