IFRS in Focus — IFRS Interpretations Committee issues Draft Interpretation on put options written on non-controlling interests
Published on:
Jun 19, 2012
This newsletter describes the proposals in the recently issued Draft Interpretation Put Options Written on Non-controlling Interests.
The proposals clarify that a put option written over a subsidiary’s equity shares results in a financial liability in the parent’s consolidated financial statements which is subsequently remeasured through profit or loss. The proposals would be applied retrospectively, however the proposed interpretation would not apply to written non-controlling interest put options accounted for as contingent consideration under IFRS 3 Business Combinations (2004).
Download our analysis of the requirements of the Draft Interpretation below.
