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Hello sir. I have a question on Kaplan
Skye has B shares in issue which allow the holder to request redepmtion at specified dates and maounts. The legal charter states that the entity has a choice whether or not to accept the request for repaymentof the B shares. In all other respects the instrument have the caharcteristice of equity.
Why does the answer states that Skye has no obligation to transfer cash ot another financial asset when holders has the right to redeem?
Answer treated the shares as equity
In future, please show the topic not the question name as the thread header.
Choice as to whether accept the request = no obligation = equity.
Don’t worry too much if you misread – all that matters is that you wrote the core definitions of financial liability and equity
🙂
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