According to AASB 132 Financial Instruments: Presentation and Disclosure,which of the following items would be regarded as a financial liability?
A)Debentures issued.
B)Promissory notes held.
C)Ordinary shares held in another entity.
D)An option to purchase shares below the market price.

Question

Quizplus · Accepted Answer

Debentures issued are considered a financial liability because they represent an obligation to pay cash or another financial asset to another entity.

According to AASB 132 Financial Instruments: Presentation and Disclosure,which of the Following