Question: Sometimes entities write instruments that require settlement in its own shares. Examples of these include purchased or written options to buy or sell shares, or

Sometimes entities write instruments that require settlement in its own shares. Examples of these include purchased or written options to buy or sell shares, or forward contracts to buy or sell shares.
Instructions
Explain the accounting issues that are created with these instruments. How does IFRS tend to treat these types of instruments? Give examples to support the different treatments that are available under IFRS. Note any differences under ASPE.

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The main issue that arises for instruments that are settleable in the entitys own shares is whether the instrument should be presented as equity a fin... View full answer

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