DEFINITION
Financial Liability

"Financial liability": IAS 32 defines a financial liability as liability that is any of the following: 1. A contractual obligation either to: 1. 1. Deliver cash or another financial asset to another entity; or 1. 2. Exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the reporting entity. 2. A contract that will or may be settled in the reporting entity's own equity instruments, and is either: 2. 1. A non-derivative for which the entity is or may be obliged to deliver a variable number of the reporting entity's own equity instruments; or 2. 2. A derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the reporting entity's own equity instruments.
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