This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

IAS 39 — Participation rights and calculation of the effective interest rate

Date recorded:

The staff noted that the submitter had filed a very specific fact pattern, on which basis the staff made the analysis and asked whether the instrument (which participated in the losses of the entity) is subject to paragraph AG8 of IAS 39 Financial Instruments: Recognition and Measurement for non-floating rate instruments.

The staff recommended not to add the issue to the agenda as the guidance in IAS 39.AG8 was applicable and clear. While all IFRIC members seemed to agree with this conclusion, some were concerned over the assumptions made, particularly that the instrument does not contain an embedded derivative. It was agreed to make clear, in the final wording for the tentative agenda decision, that the assumption that the instrument does not contain an embedded derivative is accepted as a fact, and not specifically addressing that issue does not necessarily mean that the IFRIC concurs with this conclusion.

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.