Definitions [further paragraphs]
6
Ordinary shares participate in profit for the period only after other types of shares such as preference shares have participated. An entity may have more than one class of ordinary shares. Ordinary shares of the same class have the same rights to receive dividends.
7
Examples of potential ordinary shares are:
(a) financial liabilities or equity instruments, including preference shares, that are convertible into ordinary shares;
(b) options and warrants;
(c) shares that would be issued upon the satisfaction of conditions resulting from contractual arrangements, such as the purchase of a business or other assets.
8
Terms defined in AASB 132 Financial Instruments: Presentation are used in this Standard with the meanings specified in paragraph 11 of AASB 132, unless otherwise noted. AASB 132 defines financial instrument, financial asset, financial liability and equity instrument, and provides guidance on applying those definitions. AASB 13 Fair Value Measurement defines fair value and sets out requirements for applying that definition.