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With regard to the measurement of hybrid/compound instruments, ASPE does not allow the equity component to be valued at zero. IFRS requires the use of

With regard to the measurement of hybrid/compound instruments,

  1. ASPE does not allow the equity component to be valued at zero.
  2. IFRS requires the use of the relative fair value method.
  3. After the initial measurement, the debt portion is always measured at fair value.
  4. IFRS requires the use of the residual method.

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