Which of the following statements is incorrect? a. The PAS 32 definition of "equity" reflects the basic accounting equation of "Assets - Liabilities = Equity." b. According to PAS 32, a contract is an...

Extracted text: Which of the following statements is incorrect? a. The PAS 32 definition of "equity" reflects the basic accounting equation of "Assets - Liabilities = Equity." b. According to PAS 32, a contract is an equity instrument if it may result in the receipt or delivery of the entity's own equity instruments. C. Entity A issues a compound financial instrument for P1M. If the fair value of the liability component without the equity feature is P.8M, the value to be assigned to the equity component is P.2M. d. An intention to settle a financial asset and a financial liability on a net basis without the legal right to do so is not sufficient to justify offsetting because the rights and obligations associated with the individual financial asset and financial liability remain unaltered. %3D