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IFRS 10 - Puttable instruments that are non-controlling interests

Date recorded:

The Committee received a request for guidance on the classification, in the consolidated financial statements of a group, of puttable instruments that are issued by a subsidiary but that are not held, directly or indirectly, by the parent. The question asked was whether these instruments should be classified as equity or liability in the parent’s consolidated financial statements.

The Committee discussed this issue in the July 2013 meeting, where the Committee tentatively decided not to add this issue to its agenda, because it concluded that in the light of the existing guidance in IAS 32, neither an interpretation nor an amendment to a Standard was necessary. Two comment letters were received on the tentative agenda decision, both of which agreed with the decision not to add this issue to the Committee’s agenda.

After considering the comments received on the tentative agenda decision, Staff recommended that the Committee should finalise its decision not to add this issue to its agenda. The proposed wording of the final agenda decision is shown in Appendix A of the Staff paper.

The Committee agreed with the Staff’s recommendation and had no comments on the final agenda decision.

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