IAS 32 amendment endorsed for use in Europe
Dec 28, 2009
The European Commission has completed the process of endorsing, for use in Europe, the October 2009 amendment to IAS 32 Financial Instruments: Presentation – Classification of Rights Issues.
The amendment provides that when an entity issues rights denominated in a currency other than the entity's functional currency, and those rights are issued pro rata to the entity's existing shareholders for a fixed amount of cash, they should be classified as equity even if their exercise price is denominated in a currency other than the issuer's functional currency. Click for the Commission Regulation (EC) No 1293/2009 (PDF 819k), the endorsement Regulation published in the Official Journal of the European Union on 24 December 2009.