CA Final equityvsliability — practice questions
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Practice CA Final equityvsliability in the app →Classification of a financial instrument under Ind AS 32 as a financial liability or as equity is made:Which of the following is NOT a financial liability under Ind AS 32?For an instrument to qualify as EQUITY under Ind AS 32.16, it must satisfy:A Ltd. issues preference shares redeemable at the end of 10 years and carrying a 15% p.a. CUMULATIVE dividend X Co. Ltd. issues debentures redeemable at a fixed amount at the end of 10 years; 15% interest is payable AT TABC Ltd. has two classes of puttable shares. Class A holders are entitled to a pro-rata share of the entity's A Ltd. issues compulsorily convertible preference shares (CCPS) at ₹100 each. After 10 years they convert intoP Ltd. has issued puttable ordinary shares to Q Ltd. Q Ltd. has also entered into an asset-management contractT Motors Ltd. has issued two classes of puttable ordinary shares: ordinary shares (one vote per share) and "A"D Ltd. issues preference shares to G Ltd. The HOLDER has an option to convert these preference shares into equLMN Ltd. issues preference shares redeemable in 5 years for cash. The issuer also has the option to settle insRestrictions like LACK OF ACCESS TO FOREIGN CURRENCY or NEED FOR REGULATORY APPROVAL to make a payment affect PQR Ltd. issues a call option to ABC Ltd. that allows ABC to buy PQR's equity at ₹100 per share, with NET settWhen an instrument is reclassified from FINANCIAL LIABILITY to EQUITY under Ind AS 32 (because it now qualifieA puttable ordinary share otherwise qualifies for equity classification, EXCEPT that the holder is also entitl