CERTYNEX IFRS ACADEMY

An analyst comments on the fixed-for-fixed condition applicable to contracts settled in the issuer's own equity instruments. Which of the analyst's statements is wrong?

A contract that requires delivery of a variable number of own equity instruments to match a fixed amount of cash does not meet the condition.

A contract settled in own equity instruments is an equity instrument by the mere fact of that settlement method, even if the number of instruments to deliver varies.

The fixed-for-fixed condition assumes a fixed number of own equity instruments exchanged for a fixed amount of cash or another financial asset, so that both terms must be fixed.

An exercise price set in a currency other than the issuer's functional currency does not normally meet the condition.