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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 transactionthe 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 ?
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