The International Accounting Standards Board (IASB) released a discussion paper Financial instruments with the characteristics of equity, which attempts to distinguish between equity financial instruments and other financial instruments (non-equity) on 28 February 2008.
This discussion paper was also released by the Australian Accounting Standards Board (AASB).
Users of IAS 32 Financial instruments: presentation have raised two broad criticisms of the requirements:
- the principles in IAS 32 are relatively complex for application
- the application of the principles can result in an inappropriate classification of some financial instruments
This discussion paper sets forth the first stage of the IASB's project to further improve the requirements of IAS 32.
The purpose of the discussion paper is to invite comments and views of various stakeholders on whether the proposals are an appropriate stage for the IASB's deliberations.
The IASB has indicated that the outcome of the responses will be essential to determine the future direction of the project. If the project is to be included in the IASB's active agenda, the IASB intends to undertake it jointly with the US Financial Accounting Standards Board.
Comments can be emailed to professionalstandards@cpaaustralia.com.au by Monday 7 July 2008. Please indicate the topic of your comments in the emails subject header.
Further information
