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40. AASB 132 requires the issuing entity to classify a financial instrument, or its component parts, as a liability or as equity in accordance with

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40. AASB 132 requires the issuing entity to classify a financial instrument, or its component parts, as a liability or as equity in accordance with the economic substance of the instrument at the time of initial recognition. What does this requirement actually mean? LO 14.14

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