A gold product that consists of a callable share with a strike price linked to a gold index. It is an ordinary share (common share) that has an embedded call option. The issuer of the share has its obligation limited to the lower of the fair value of the ordinary shares if the call option is not exercised (i.e. the claim is limited to the issuer’s available economic resources); and the strike price linked to a gold index if the option is exercised (i.e. the claim of the holder is determined by a variable that is linked to the performance of a gold index, rather than  the issuer’s economic resources).

This share would be classified as equity in its entirety due to the fact that the issuer has no contractual obligation to transfer economic resources other than at liquidation and the amount of the claim of the holder is limited to the issuer’s available economic resources. Otherwise, the performance of the underlying gold index is the key determinant of the amount of the claim.