From ACT Wiki
IAS 32 defines a financial liability as liability that is any of the following:
A contractual obligation either to:
- Deliver cash or another financial asset to another entity; or
- Exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the reporting entity.
A contract that will or may be settled in the reporting entity's own equity instruments, and is either:
- 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
- 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.