alleryStart learning →A compound instrument's equity part is measured as?
ANominal value of shares
BMarket price of the shares
CSame amount as the liability
DThe residual after liability
Answer & Solution
Correct answer: D. The residual after liability
Equity is a residual interest, so it takes whatever is left after the liability component is fair valued.
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?