I just want to get a more detailed analysis of the two difference

I) ssures should accont for an instument bot liability and equity characterstics entirely as a liability, oar a entirely as an equity insturment, depending on whwich charactorestics governs

2) usuers shoould account for an instuments as cosisting of liability componant and an equity component that should be accounted separatley

There are proffessionala that are fevouring on ver the the other why? Is it because IFRS is fevering the second one I know I chose the second one but I am wanting get a professionla undestanding an a convinceing advice to choice one over the other.

Detail understanding more important to me than just submitiing the assignment with help.

Tesfaye Aleme