Financial Liability or Equity Instrument?

How can one distinguish whether an entity has issued a financial liability or an equity instrument in terms of IAS 32? Is there one question that we could ask that cuts to the core of this analysis? Visit www.accountingreach.com for more resources on the accounting treatment of both financial liabilities and equity instruments. Accounting Reach is dedicated at providing students and professionals with highly effective, animated IFRS micro-videos. The video courses and support material will teach you both the principles and reasoning behind the IFRS standard - one concept at a time! The video lessons are short (2 to 8 minutes each), focussed and efficient - ideal for those that have limited time to study! These videos are accessible anywhere and any time! Our goal is to help you to succeed with your studies and your career, whilst allowing you more time to do the other things in life that you love! Visit www.accountingreach.com to access all the available resources including some free material.