IFRS 9 — Financial assets eligible for the election to present changes in fair value in other comprehensive income
Date recorded:
Background
In May 2017, the IC discussed whether a financial instrument, classified as equity by the issuer in accordance with IAS 32.16A-16D, is eligible for FVTOCI classification in terms of IFRS 9.4.1.4. The IC concluded that it is clear from the requirements of IFRS 9 and IAS 32 that such financial instruments are financial liabilities and are not equity instruments as defined. Accordingly, they are not eligible for FVTOCI classification in terms of IFRS 9.4.1.4. The IC decided not to take the issue onto its agenda.
Staff analysis of comment letters received
Three comment letters were received in which all the respondents agreed with the IC’s decision. No significant comments were raised.
Staff recommendation
The Staff recommend that the IC finalise the agenda decision.
