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.

SIC issues two draft Interpretations

  • News default Image

13 Sep 2001

The Standing Interpretations Committee has invited comment on two draft Interpretations.

Comment deadline on both is 5 November 2001:
  • SIC D33, Consolidation and Equity Method – Potential Voting Rights, proposes that potential voting rights that are presently exercisable or convertible should be considered when assessing whether an enterprise controls or significantly influences another enterprise. All potential voting rights should be considered, including potential voting rights held by other enterprises.
  • SIC D34, Financial Instruments - Instruments or Rights Redeemable by the Holder, proposes that the issuer of a puttable instrument should classify the entire instrument as a liability. A puttable instrument is a financial instrument or a right that gives the holder the right to put the instrument or right back to the issuer for cash or another financial asset. The amount payable upon redemption is determined based on an index or other item that has the potential to increase and decrease. The consensus in SIC D34 will affect open-ended mutual funds and certain co-operative organisations by requiring them to present their unitholders' funds as liabilities.
  • SIC has also completed its discussions of SIC D27, Transactions in the Legal Form of a Lease and Leaseback, including comments received from the IASB. The SIC reaffirmed its consensus and is redrafting the Interpretation to focus on the principles involved.

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.