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  • IAS 39 Financial Instruments: Recognition and Measurement


  • IFRIC D25 issued 6 August 2009. Click for Press Release (PDF 106k).
  • Comment deadline 5 October 2009
  • Final Interpretation approved by IFRIC in November 2009, subject to approval to issue by the IASB
  • IFRIC Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments ratified by the IASB on 26 November 2009. Click for Press Release (PDF 109k).

Deloitte Letter of Comment on this Draft Interpretation

Important: IFRIC D25 resulted in the final IFRIC Interpretation 19, issued 20 November 2009. The information on this page reflects the IFRIC's discussions during the development of the final interpretation, including tentative decisions that were changed along the way. We have retained this page for historical purposes only.

Summary of IFRIC D25

IFRIC D25 Extinguishing Financial Liabilities with Equity Instruments addresses the appropriate accounting under IFRSs when a creditor agrees to accept an entity's shares or other equity instruments to settle the financial liability fully or partially. IFRIC D25 proposes that:

  • an entity's equity instruments are part of any 'consideration paid' to extinguish a financial liability.
  • the equity instruments should be measured at either their fair value or the fair value of the financial liability extinguished, whichever is more reliably determinable.
  • any difference between the carrying amount of the financial liability extinguished and the initial measurement amount of those equity instruments should be included in the entity's profit or loss for the period.

Correction list for hyphenation

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