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IFRS® Accounting Standards

Financial Instruments with Characteristics of Equity

Summary

The International Accounting Standards Board’s (IASB) Discussion Paper, “Financial Instruments with Characteristics of Equity” was issued in June 2018. The paper seeks to address the current application challenges with IAS 32 Financial Instruments: Presentation.

The Discussion Paper:

  • sets out the IASB's preferred approach to classification of a financial instrument, from the perspective of the issuer; and
  • explores enhanced presentation and disclosure requirements.

In responding to the challenges, the IASB is seeking to limit unnecessary changes to classification outcomes of IAS 32 that are already well understood, and that stakeholders say provide useful information.

Staff Contact(s)

Matthew Bishop, CPA, CA Principal, Accounting Standards Board

Katherine Knowlton, CPA, CA Associate Director, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to January 2018

  • Approving project

    The IASB approved this project in January 2018

  • Consulting stakeholders

    IASB issued a Discussion Paper in June 2018

    AcSB conducted public outreach on the Discussion Paper from September to December 2019

  • Deliberating feedback

    The AcSB submitted its response letter to the IASB in January 2019

    The IASB deliberated comments received on its Discussion Paper from March to July 2019

    The IASB tentatively decided to focus on addressing practice issues by clarifying some underlying principles in IAS 32

  • Final pronouncement

News


February 19, 2019

International Activity

AcSB Response – Financial Instruments with Characteristics of Equity

On January 15, 2019, the AcSB responded to the International Accounting Standards Board’s (IASB) Discussion Paper, “Financial Instruments with Characteristics of Equity”, which seeks to address the current application challenges with IAS 32 Financial Instruments: Presentation. Read our letter to understand the matters we raised to the IASB for further consideration.

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal voting process.