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IAS 32 — Financial Instruments: Presentation

Effective date:

First effective as Canadian GAAP under Part I for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011 except for subsequent amendments.  Earlier application of Part I was permitted.

Published by the IASB:

December 2003

Included in Part I of CPA Canada Handbook:

January 2010

Reach out to our IAS 32 Specialist

Kerry Danyluk

Overview

IAS 32 Financial Instruments: Presentation outlines the accounting requirements for the presentation of financial instruments, particularly as to the classification of such instruments into financial assets, financial liabilities and equity instruments. The standard also provides guidance on the classification of related interest, dividends and gains/losses, and when financial assets and financial liabilities can be offset.

History of  IAS 32

The following table shows the history of this standard subsequent to the adoption of IFRS in Canada.

Date1

Development

Comments

Included in Part I of the CPA Canada Handbook2

January 2010

Part I of the CPA Canada Handbook issued

Effective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. Earlier application is permitted.

January 2010

December 16, 2011

Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32) issued

 

Paragraph AG38 has been deleted and paragraphs AG38B-AG38F have been added to clarify the meaning of the offsetting criterion "currently has a legally enforceable right to set off" and the principle behind net settlement, including identifying when some gross settlement systems may be considered equivalent to net settlement.

These amendments are effective for annual periods beginning on or after January 1, 2014. Earlier application is permitted when applied with corresponding amendment to IFRS 7 Financial Instruments: Disclosures.

May 2012

May 17, 2012

Amendments resulting from Annual Improvements 2009-2011 Cycle (tax effect of equity distributions)

 

Paragraphs 35, 37 and 39 have been amended and paragraph 35A has been added to clarify the income tax consequences of distributions to holders of an equity instrument and of transaction costs of an equity transaction.

The above amendments are effective for annual periods beginning on or after January 1, 2013. Earlier application is permitted.

August 2012

Notes

  1. For further details of relevant developments prior to this, please refer to our Deloitte Global section.
  2. Newly issued, amended or revised IFRSs are part of Canadian GAAP only after they are approved by the Accounting Standards Board in accordance with its due process.

The above summary does not include details of consequential amendments made as the result of other projects.

Related Interpretations

Related IFRIC Agenda Rejection Notices

The rejection notices are available in our Deloitte Global section.

  • IAS 32 — Accounting for a financial instrument that is mandatorily convertible into a variable number of shares subject to a cap and a floor (May 2014)
  • IAS 39 — Accounting for term-structured repos (March 2014)
  • IAS 32 — Classification of a financial instrument that is mandatorily convertible into a variable number of shares upon a 'contingent non-viability event' (January 2014)
  • IAS 32 — Financial instrument that is mandatorily convertible into a variable number of shares (subject to a cap and a floor) but gives the issuer the option to settle by delivering the maximum (fixed) number of shares (January 2014)
  • IFRS 10 — Classification of puttable instruments that are non-controlling interests (November 2013)
  • IAS 32 — Classification of financial instruments that give the issuer the contractual right to choose the form of settlement (September 2013)
  • IAS 27 — Put options written over non-controlling interests (September 2010)
  • IAS 32 — Shareholder discretion (March 2010)
  • IFRS 4 — Scope issue for REITs (January 2010)
  • IAS 32 — Application of the ‘fixed for fixed’ condition (January 2010)
  • IAS 32 — Classification of puttable and perpetual instruments (March 2009)
  • IAS 32 — Transaction costs to be deducted from equity (September 2008)
  • IAS 39 — Gaming transactions (July 2007)
  • IAS 39 — Financial Instruments puttable at an amount other than fair value (January 2007)
  • IAS 32 — Puts and forwards held by minority interests (November 2006)
  • IAS 32 — Classification of a financial instrument as liability or equity (November 2006)
  • IAS 32 — Foreign currency instruments exchangeable into equity instruments of the parent entity of the issuer (November 2006)
  • IAS 32 — Changes in the contractual terms of an existing equity instrument resulting in it being reclassified to financial liability (November 2006)
  • IAS 19 — Employee long service leave (November 2005)

AcSB’s IFRS Discussion Group meetings

Amendments under consideration

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.