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IAS 32 — Put options over non-controlling interests (NCIs)

Background

A project to determine how an entity should account for changes in the carrying amount of financial liability for a written put option over a non-controlling interest (NCI, previously referred to as 'minority interest').

This project seeks to address a potential inconsistency between the requirements of IAS 32 Financial Instruments: Presentation, IAS 39 Financial Instruments: Recognition and Measurement and IFRS 9 Financial Instruments for measuring financial liabilities and the requirements in IAS 27 Consolidated and Separate Financial Statements and IFRS 10 Consolidated Financial Statements for accounting for transactions with owners in their capacity as owners; that is, whether the offsetting entry for subsequent measurement changes should be to profit or loss or to equity.

Originally an IFRS Interpretations Committee project, the IASB subsequently decided to proceed with the project as a board-level narrow scope amendment project.

 

Current status of the project

The Committee released Draft Interpretation DI/2012/2 Put Options Written on Non-controlling Interests on 31 May 2012.  At its March 2013 meeting, the IASB decided to recommend that the Committee not finalise the draft Interpretation and instead the IASB will now undertake a narrow scope amendment to IAS 32.  Next steps in the project will be determined in the second quarter of 2014.

 

Project milestones

DateDevelopmentComments
May 2010 Added to the IFRS Interpretations Committee agenda
September 2010 The Committee decided to refer this matter to the IASB for resolution
March 2011 Committee recommends the IASB implement a scope exclusion from IAS 32 to deal with the issue The IASB rejected the scope exclusion to IAS 32 at its September 2011 meeting
31 May 2012 Draft Interpretation DI/2012/2 Put Options Written on Non-controlling Interests Comment deadline 1 October 2012
March 2013 Reactivated as an IASB narrow scope amendment project Draft Interpretation will not be finalised