Does the warrant agreement exchange a fixed amount of cash (or another financial asset) in the entity’s functional currency for a fixed number of the entity’s own equity instruments and is settled gross
Examples
If the exercise price is not denominated in the entity’s functional currency
No
Yes
Currency Differences
Variable Shares
Existence of a complex conversion formula which does not produce a fixed number of shares
Variable Price
The price may be derived from or dependent on the value of an underlying asset, such as a commodity, market price or security