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Financial Instruments Ind AS
Financial Reporting
What is meant by derivative and non derivate in the given images. Please help me in this regard
Answers (2)
Non derivative - Say a convertible debenture. If each debenture can be converted into 10 equity shares [here the number of equity instruments is non-variable). But if the convertible debenture is to be converted into equity based on equity share price in future, there is an obligation to deliver variable number of equity instruments in the future.
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