Equity Instruments

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..... es. Note:- * If there is any statutory right to receive cash or statutory obligation to deliver cash, then it will not be classified as 'Financial Asset' or 'Financial Liability' [Ex- Income Tax Payable] * If an entity issues preference shares or debentures or taken a loan - then that preference share/debentures/loan need to classify as financial liability or equity instrument. Situation whe .....

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..... h Instrument is convertible in Variable no. of Equity Shares of Entity - Financial Liability Fixed no. Equity Shares of Entity - * If it is Compulsory convertible - Equity * If it is convertible at the option of - Issuer(entity) - Equity or Holder then Compound Financial Instrument. If any entity has borrowing which has mix features of Financial Liability & Equity Instrument, then it is kno .....

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