Explain account for an investmet both liability vs equity

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Difference between

1) the Issuers should account for an investmet both Liability and equity characterstics enitirly as a liabiltiy or a nentirly as equity instrument wich characterstics govers.

2) Issuers should account for and investment as consisting of liability componats and an equity componans that should be accounted separatly.

Question 1: Does the second choice underestimate the liability and overestimate the equity or Vise Vesa?

Reference no: EM132698475

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