IFRS 2 Group share based payments

Hi sir, for group share based payments:

the receiving entity should recognize the transaction as equity-settled only if
– awards are its own equity instruments or
– it has no obligation to settle the transaction

the settling entity should recognize the transaction as equity-settled only if transaction is settled in its own equity instruments

My question is, how do we determine which entity has the obligation to settle the transaction ? Based on what factor ?

Is it wrong to assume that the settling entity is always the one that has the obligation to settle the transaction ?