IAS 32 examines whether an individual instrument (or class of instruments) issued by the ___________ is a financial liability or equity.

As an exception to the general definition of a _____________, an instrument that meets the definition of a financial liability is nevertheless classified as an equity instrument if it has all the features and meets the conditions in paragraphs 16A and 16B.

Application of the basic definitions in IAS 32 means that an instrument is an equity instrument only if the instrument includes no contractual obligation to deliver cash or another __________________ to another entity.

Broadly speaking, apart from this exemption, an instrument can only be classified as equity under IAS 32 if the issuer has an unconditional right to avoid delivering cash or another financial instrument or, if it is settled through the entity’s own equity instruments, it is for an exchange of a fixed amount of cash for a fixed number of the entity’s own equity instruments. In all other cases it would be classified as a ________________________

IAS 32 focuses on the contractual rights and obligations arising from the terms of an instrument, rather than on the probability of those rights and obligations leading to an outflow of cash or other resources from the entity, as would be the case for a provision accounted for under IAS _____________ – Provisions, Contingent Liabilities and Contingent Assets.

IAS 32 considers the question of whether a transaction is a financial liability or an ________________ at two levels