Is there a contractual obligation to pay cash that the issuer cannot avoid?
(IAS 32.11.19.20.25)
NO
Is there an obligation to issue a variable number of shares? (IAS 32.32.21)
NO
Is there an obligation to issue a fixed number of shares to settle an instrument whose book value is variable, e.g. denominated in a foreiegn currency? (IAS 32.22.24)
NO
EQUITY
YES
YES
YES
Does the instrument have any characteristics that are similar to equity? (IAS 32.28)
NO
LIABILITY
YES
COMPOUND
YES
NO
COMPOUND
LIABILITY
EQUITY
Is there a contractual obligation to pay cash that the issuer cannot avoid?
(IAS 32.11.19.20.25)
NO
YES
Is there an obligation to issue a fixed number of shares to settle an instrument whose book value is variable, e.g. denominated in a foreiegn currency? (IAS 32.22.24)
NO
YES
Is there an obligation to issue a variable number of shares? (IAS 32.32.21)
NO
YES
Does the instrument have any characteristics that are similar to equity? (IAS 32.28)