As a pragmatic exception to these basic criteria, an instrument that would otherwise meet the definition of a financial liability is nevertheless classified as an equity instrument if it is a ____________ with all the features, and meeting the conditions described.

IAS 32 examines whether an individual instrument (or class of instruments) issued by the ___________ is a financial liability or equity.

An issuer of a financial instrument must classify the instrument (or its component parts) on initial recognition as a financial liability, a financial asset or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, a ___________________and an equity instrument.

Application of the basic definitions in IAS 32 means that an instrument is an equity instrument only if the instrument includes no contractual obligation to deliver cash or another __________________ to another entity.

Broadly speaking, apart from this exemption, an instrument can only be classified as equity under IAS 32 if the issuer has an unconditional right to avoid delivering cash or another financial instrument or, if it is settled through the entity’s own equity instruments, it is for an exchange of a fixed amount of cash for a fixed number of the entity’s own equity instruments. In all other cases it would be classified as a ________________________

The accounting classification of an instrument as a liability or equity is much more than a matter of misallocation.Select one:TrueFalse