SCOPE OF FINANCIAL INSTRUMENT PRESENTATION

Aufwendungsbereich

[8-9] A contract to buy or sell a non-financial item can be settled in cash or in receipt of a financial instrument, or in trade of another financial instrument (as in an exchange) which are held with the expectation that the non-financial  items will be used, purchased or sold.

If an amount of the company´s equity shares are to be turned over at a later date, and the number of shares is not fixed, they are classifed as equity instruments.

Puttable instruments are those which give the holder the right to put the instrument back to the issuer for cash or another financial instrument. This would take place following an uncertain future event or upon death of the instrument holder.

These instruments are lawfully binding and must be agreed upon by two or more parties. Not all agreements are in writing.