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Ind AS 33 lists examples of POTENTIAL ORDINARY SHARES. Which is NOT one?
AOptions and warrants
BOutstanding ordinary shares not yet listed on a stock exchange
CFinancial liabilities or equity instruments convertible into ordinary shares (including convertible preference shares)
DShares issuable upon satisfaction of conditions resulting from contractual arrangements (e.g. business combination earn-outs in shares)
Answer & Solution
Correct answer: B. Outstanding ordinary shares not yet listed on a stock exchange
Ordinary shares already issued (whether listed or not) are NOT 'potential' ordinary shares — they're actual ordinary shares. Potential ordinary shares are contracts that MAY entitle the holder to ordinary shares in the future.
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