An issuer of a financial instrument must classify the ________________ (or its component parts) on initial recognition as a financial liability.

An issuer of a financial instrument must classify the instrument (or its component parts) on initial recognition as a financial liability, a financial asset or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, a ___________________and an equity instrument.

As a pragmatic exception to these basic criteria, an instrument that would otherwise meet the definition of a financial liability is nevertheless classified as an equity instrument if it is a ____________ with all the features, and meeting the conditions described.

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

A financial asset is recognised whenAnswer : risks and rewards are transferred  it is probable that future economic benefits will flow to the entity and the cost of the instrument can be measured reliably   control is obtained   the entity becomes a party to a contractual provision of the instrument

The accounting classification of an instrument as a liability or equity is much more than a matter of misallocation.Select one:TrueFalse