alleryStart learning →A bond convertible into fixed shares is?
AA pure financial liability
BA compound financial instrument
CA treasury share of issuer
DA pure equity instrument
Answer & Solution
Correct answer: B. A compound financial instrument
It has a liability part (the bond) and an equity part (the conversion option), which makes it compound.
Keep practising Ind AS 32 Financial Instruments: Presentation
Browse all Ind AS 32 Financial Instruments: Presentation questions for CA Final, or explore more Financialreporting topics.
Related questions
Pro rata rights at a fixed price in any currency are?Which are 'entities' under Ind AS 32?Must a financial instrument contract be written?On reclassifying equity to liability, difference goes to?Puttable equity must sit in which class?Puttable equity must entitle holders to?A master netting arrangement provides?Is a sinking fund offset against the debentures?