• Covering definitions of debt and equity
  • Presenting IAS 32 scope and approach to these concepts
  • Testing the gained knowledge through exercises

Detailed Objectives

A) Classification principles of debt and equity

  • Understand and apply the criteria for classification of a financial instrument either as a debt or equity
  • Identify various principles of the classification as debt or equity and exceptions
  • Identify compound financial instruments which have both debt and equity features


B) Practical applications

  • Distinguish debt from equity
  • Understand how the accounting treatment differs depending on classification as debt or equity