Question: Sometimes an entity issues financial instruments that require settlement using its own shares. Examples of these include purchased or written options to buy or sell

Sometimes an entity issues financial instruments that require settlement using its own shares. Examples of these include purchased or written options to buy or sell its own shares, or forward contracts to buy or sell its own shares. Explain the accounting issues that result from the existence of 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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