Australian Alert on IASB debt-equity proposals

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28 Aug 2006

Deloitte (Australia) has published Accounting Alert 2006/08 Financial Instruments Puttable at Fair Value and Obligations Arising on Liquidation – Proposed Amendments to AASB 132.

Alert 2006/08 explores the IASB's proposals to amend the debt versus equity distinction in IAS 32 in relation to puttable instruments and obligations on liquidation.

In our view, the proposals lack sufficient scope to address the common investor confusion arising in the Australian context surrounding unit trusts, co-operatives and similar entities. Many of these entities may still classify their 'equity' as a liability, even if the proposals go ahead.

Affected entities have until 22 September 2006 to make a submission to the Australian Accounting Standards Board. Click to:

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