IAS 27 — Put options written over non-controlling interests

Date recorded:


The Committee received a request for guidance on how an entity should account for changes in the carrying amount of a financial liability for a put option, written over shares held by a non-controlling interest shareholder (‘NCI put’), in the consolidated financial statements of a parent entity. The request focuses on the accounting for an NCI put after the 2008 amendments were made to IFRS 3 Business Combinations, IAS 27 Consolidated and Separate Financial Statements and IAS 39 Financial Instruments: Recognition and Measurement.

The Committee observed that paragraph 23 of IAS 32 requires the financial liability recognised for a NCI put to be subsequently measured in accordance with IAS 39. The Committee also observed that paragraphs 55 and 56 of IAS 39 require changes in the carrying amount of financial liabilities to be recognised in profit or loss. However, the Committee noted that additional accounting concerns exist relating to the accounting for NCI puts.


Decision not to add

September 2010



The Committee noted that these additional accounting concerns would be best addressed as part of the Board’s Financial Instruments with Characteristics of Equity (FICE) project. Consequently, the Committee decided not to add this issue to its agenda but to recommend that the Board should address these additional accounting concerns as part of the FICE project.

The Committee also observed that it would expect entities to apply the guidance in IAS 1 Presentation of Financial Statements in determining whether additional information relating to the accounting for NCI puts should be disclosed in the financial statements, including a description of the accounting policy used.


IFRIC reference: IAS 27-11

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