Which of the following would be classified as a hybrid/compound financial instrument resulting in two elements being reported on the SFP?
A) perpetual debt
B) mandatorily redeemable preferred shares
C) debt with detachable warrants
D) puttable shares

Question

Quizplus · Accepted Answer

Debt with detachable warrants is a hybrid/compound financial instrument because it contains both a debt element and an equity element (the detachable warrants). As a result, both elements must be reported separately on the statement of financial position. The other options listed do not have multiple elements and would not require separate reporting.

Which of the Following Would Be Classified as a Hybrid/compound