IAS 32

IASB seeks clarity by distinguishing equity from liability

In June 2018, the International Financial Standards Board (IASB) published its discussion paper on financial instruments with characteristics of equity (FICE). As part of its conceptual framework project, the discussion paper deals with improvements of IAS 32 Financial Instruments: Presentation with special regard to complex financial instruments. Background T […]

For preference shares, when is debt classified as equity?

International Accounting Standard (IAS) 32 Financial Instruments: Presentation defines rules for when a financial instrument is to be classified as equity or liability. Its revised version was issued back in 2003 but, in recent years, its instructions for classification have become less and less simple. In this article I will provide some guidance insofar as tha […]
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IFRS 9: classifying financial assets as equity instruments

In its September 2017 update, the IFRS Interpretations Committee (IFRIC) published its view on when to classify particular investments as equity under IFRS 9. The IFRIC received a letter asking in which cases particular financial instruments would be eligible for the presentation election described in paragraph 4.1.4 of IFRS 9. This paragraph allows the holde […]