BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -MFRS 132 permits, as an exception to its principles, certain puttable shares to be classified as equity from the issuer’s perspective. However, such puttable shares, from the holder’s perspective, do not meet the definition of equity instrument for the purpose of financial asset classification in MFRS 9.

Detailed explanation-2: -IAS 32 specifies presentation for financial instruments. The recognition and measurement and the disclosure of financial instruments are the subjects of IFRS 9 or IAS 39 and IFRS 7 respectively. For presentation, financial instruments are classified into financial assets, financial liabilities and equity instruments.

Detailed explanation-3: -Financial instruments are addressed in three standards: AS-31, which deals with distinguishing debt from equity and with netting; AS 30, which contains requirements for recognition and measurement; and AS-32, which deals with disclosures.

Detailed explanation-4: -Ind AS 32 deals with the presentation of Financial instrument in the Balance Sheet. Typically, it is the Issuer who needs to decide whether the instrument is to be presented as financial liability or equity instrument. Irrespective the holder would always present it as financial asset.