AcSB Exposure Draft – Financial Instruments with Characteristics of Equity
Feb 22, 2024
On February 22, 2024, the Accounting Standards Board (AcSB) proposed to incorporate into Part I of the CPA Canada Handbook – Accounting, amendments to IAS 32 Financial Instruments: Presentation, IFRS 7 Financial Instruments: Disclosures, and IAS 1 Presentation of Financial Statements.
This AcSB Exposure Draft reflects proposals made by the International Accounting Standards Board (IASB) that the AcSB intends to adopt, subject to deliberating comments received, as Canadian generally accepted accounting principles.
The IASB’s Exposure Draft proposes to address the diversity in practice and respond to investor feedback by:
- clarifying the underlying classification principles of IAS 32 to help companies distinguish between financial liabilities and equity;
- requiring companies to disclose information to further explain the complexities of instruments that have both debt and equity features; and
- introducing new presentation requirements for amounts—including profit and total comprehensive income—attributable to ordinary shareholders separately from amounts attributable to other holders of equity instruments.
AcSB urges stakeholders in Canada to provide feedback to the IASB regarding its Exposure Draft. The IASB has outlined specific questions for input in its Invitation to Comment within the Exposure Draft. The AcSB advises that comment letters should be sent directly to the IASB, with a copy also sent to the AcSB. Comments to the IASB are due by March 29, 2024.
Access the press release on FRAS Canada’s website.
