IFRIC Update
Date recorded:
IFRIC asked that two items be mentioned to the Board. The first was the potential problems surrounding the removal of the paragraph on dividend escalators in the financial instruments project. There was concern that the removal of this paragraph may send certain signals to the market.
The second item was the situation where a subsidiary issues preference shares that the parent company guarantees. The issue is whether at the parent level they should be reclassified or not. As currently stands they should not, and IFRIC felt this to be odd.