Related Discussions

• Financial Instruments with Characteristics of Equity - IASB

• Jan 24, 2018

• At its meeting on January 24, 2018, the IASB discussed an issue raised on the pre-ballot draft of the FICE Discussion Paper. The Board discussed whether such an instrument could be analysed as an equity host and an embedded derivative asset if the issuer held the option to settle the claim. In cases where the entity does not have the option to limit the amount of a claim to the entity’s available economic resources, the instrument would be analysed as a liability host and an embedded derivative. This position is consistent with the Board’s preliminary view on contingent events. The Board tentatively decided: (i) before proposing any particular accounting requirements, to raise the issue in the Discussion Paper and seek feedback on whether separating embedded derivatives may be a potential solution; and (ii) to raise a question in the Discussion Paper about whether and how the attribution requirements may help provide information about complex payoffs if the embedded derivative is not separated from the equity host contract.

• Financial Instruments with Characteristics of Equity - IASB

• Mar 23, 2017

• On March 23, 2017, the IASB discussed: (i) the application of the Gamma approach to derivatives on ‘own equity’; (ii) a summary of interactions with other IFRS Standards; and (iii) due process and permission to ballot. No decisions were made. Given its publication schedule, the Board expects to publish the Discussion Paper towards the end of 2017.

• Financial Instruments with Characteristics of Equity - IASB

• Feb 22, 2017

• At its meeting on February 22, 2017, the IASB discussed: (i) the scope of contractual rights and obligations an entity should consider when applying the Gamma approach to a financial instrument; and (ii) application guidance and illustrative examples that will help clarify how its decisions on the Gamma approach would apply to accounting within equity. At a future meeting, the Board will discuss application of the Gamma approach to the classification of derivatives on non-controlling interests with an exercise price denominated in a foreign currency; and a summary of interactions with other IFRS Standards, IFRIC Interpretations and the Conceptual Framework in Financial Reporting.

• Financial Instruments with Characteristics of Equity - IASB

• Dec 13, 2016

• At its meeting on December 13, 2016, the IASB discussed how the Gamma approach would apply to classifying derivatives whose classification under IAS 32, Financial Instruments: Presentation has been challenging in practice. The Board discussed whether a derivative with particular variables would be solely dependent on the residual amount. The Board was not asked for any decisions. At a future meeting the Board will discuss: (i) the substance of rights and obligations in contracts and the interaction with legal and regulatory requirements; and (ii) the recognition, derecognition and reclassification of equity instruments.

• Financial Instruments with Characteristics of Equity - IASB

• Oct 18, 2016

• At its meeting on October 18-19, 2016, the IASB discussed claims that grant the issuer the right to choose between alternative settlement outcomes. Discussion continued to focus on developing the Gamma approach to classification and presentation. At a future meeting the Board will discuss: (i) classification of instruments meeting the existing puttables exception; (ii) substance of rights and obligations in contracts and the interaction with legal and regulatory requirements; and (iii) recognition, derecognition and reclassification of equity instruments.

• Financial Instruments with Characteristics of Equity - IASB

• Sep 20, 2016

• At its meeting on September 20, 2016, the IASB discussed the presentation of derivatives on ‘own equity’ that are classified as liabilities, as well as disclosures of financial liabilities and equity. The Board focused on its developing Gamma approach to classification and presentation. At a future meeting the Board will discuss: (i) classification of instruments meeting the existing puttables exception; (ii) accounting for conditional alternative settlement outcomes; and (iii) recognition, derecognition and reclassification of equity instruments.

• Financial Instruments with Characteristics of Equity - IASB

• Jul 18, 2016

• At its meeting on July 18-19, 2016, the IASB continued its discussion of potential approaches to classifying derivatives on ‘own equity’, including tentatively deciding that entities should: (a) not classify all derivatives as assets or liabilities; and (b) classify derivatives on ‘own equity’ in their entirety rather than splitting them into components. The Board focused its discussion on the Gamma approach. The Board was also provided with a summary of discussions to date for information only. The Board has identified a number of issues for discussion at a future meeting.

• Financial Instruments with Characteristics of Equity - IASB

• Jun 20, 2016

• At its meeting on June 20-22, 2016, the IASB received an oral update on the status of this research project, including a summary of the discussions at the recent joint meeting of the Capital Markets Advisory Committee and the Global Preparers Forum on June 16, 2016. No decisions were made.

• Financial Instruments with Characteristics of Equity - IASB

• May 17, 2016

• At its meeting on May 17-19, 2016, the IASB continued its discussion of potential requirements for the attribution of profit or loss and other comprehensive income for derivatives if they are classified as equity (such as warrants). Four possible approaches were discussed. The Board also identified a number of issues to be discussed at a future meeting.

• Financial Instruments with Characteristics of Equity - IASB

• Apr 20, 2016

• At its meeting on April 20, 2016, the IASB continued its discussion of the potential separate presentation requirements for subclasses of liabilities and of equity. They focused their discussion on the Gamma approach. The Board indicated that it would improve comparability to apply the separate presentation requirements to stand-alone and embedded derivatives that depend on the residual amount. The Board also discussed the specific requirements for determining the amount to be attributed to classes of equity other than ordinary shares. For non-derivative equity claims other than ordinary shares (such as non-cumulative preference shares), the Board indicated that it would be useful to attribute amounts based on the existing requirements for such instruments in IAS 33, Earnings per Share. For derivative equity claims (such as warrants), the Board discussed three approaches to the attribution of profit or loss and other comprehensive income. The Board was not asked for decisions at this meeting.

• Financial Instruments with Characteristics of Equity - IASB

• Feb 16, 2016

• At its meeting on February 16-17, 2016, the IASB discussed the further development of the three approaches (Alpha, Beta and Gamma) it had identified as potential ways of improving IAS 32, Financial Instruments: Presentation. Those three approaches classify claims as liabilities or equity based on different features of claims that are relevant to different assessments of the entity’s financial position and financial performance. The Board’s discussions focused on developing Approach Gamma, because it distinguishes claims based on a combination of the features used to distinguish claims in the other approaches.

• Financial Instruments with Characteristics of Equity - IASB

• Oct 21, 2015

• At its meeting on October 21, 2015, the IASB discussed an analysis of: (i) the challenges associated with accounting for derivatives on "own equity"; and (ii) how IAS 32 Financial Instruments: Presentation deals with those challenges. The IASB acknowledged that any approach to classifying derivatives on ‘own equity’ will require a compromise between reflecting the underlying exchange of equity and non-equity instruments and the operational challenges of doing so. The IASB will continue its discussion at a future meeting.

• Financial Instruments with Characteristics of Equity - IASB

• Sep 24, 2015

• At its meeting on September 24, 2015, the IASB discussed an analysis of the existing definitions and other related requirements in IAS 32, Financial Instruments: Presentation. It also discussed possible approaches for improvements to the existing definitions and other related requirements in IAS 32 that the staff intend to develop further as the project progresses. No decisions were made. The IASB will continue its discussion at a future meeting.

• Financial Instruments with Characteristics of Equity - IASB

• Jul 23, 2015

• At its meeting on July 23, 2015, the IASB discussed the research project on Financial Instruments with Characteristics of Equity. The IASB discussed the relevance of features of claims to various assessments that users might make using information provided in the statement of financial position and statement of financial performance. No decisions were made.

• FICE - IASB

• Jun 23, 2015

• At its meeting held on June 23, 2015, the IASB discussed the features of a claim against an entity, including which features of claims against the entity are currently used to distinguish between classes of claims in the Conceptual Framework, IAS 32 Financial Instruments: Presentation, and other relevant IFRS. No tentative decisions were made.

• Financial Instruments with Characteristics of Equity - IASB

• May 20, 2015

• On May 20, 2015, the International Accounting Standards Board met to discuss the Financial Instruments with Characteristics of Equity project at an education session. The IASB discussed (i) the main challenges with distinguishing between liabilities and equity under IAS 32, Financial Instruments: Presentation; and (ii) how it intends to approach those challenges as part of this project. No tentative decisions were made.

• Financial Instruments with Characteristics of Equity (Potential Amendments to IAS 32) - IASB

• Oct 22, 2014

• At its meeting on October 22-24, 2014, the IASB discussed the scope and next steps of this research project. The IASB decided to pursue two overlapping streams of work relating to (a) Classification: Investigating potential improvements to the classification of liabilities and equity in IAS 32 Financial Instruments: Presentation. This stream would also include an investigation of potential amendments to the definitions of liabilities and equity in the Conceptual Framework; and (b).Presentation and Disclosure: Investigating potential improvements to the presentation and disclosure requirements for financial instruments with characteristics of equity, irrespective of whether they are classified as liabilities or equity. The IASB also noted the interaction between this research project and the Conceptual Framework project.