IAS 39 Own shares that are held for trading purposes

Date recorded:


The IFRIC considered providing guidance on the issue regarding whether an exception from SIC-16 Share Capital – Reacquired Own Equity Instruments (Treasury Shares) should be made for own shares that are held for trading purposes in order to allow them to be measured at fair value with changes in value being reported in the income statement.


Decision not to add

August 2002



The IFRIC agreed not to require publication of an Interpretation on this issue, because IAS 39 and SIC-16 are clear  that:

(a) own shares should be treated as a deduction from equity in all circumstances,

(b) they may not be classified as an asset that is held for trading; and

(c) no gain or loss is recognised in the income statement on such shares.

These issues were considered as part of the process of improving IAS 32.


IFRIC reference: IAS 39

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