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.

Australian Alert on IASB debt-equity proposals

  • Australia Image

28 Aug 2006

Deloitte (Australia) has published Accounting Alert 2006/08 Financial Instruments Puttable at Fair Value and Obligations Arising on Liquidation – Proposed Amendments to AASB 132.

Alert 2006/08 explores the IASB's proposals to amend the debt versus equity distinction in IAS 32 in relation to puttable instruments and obligations on liquidation.

In our view, the proposals lack sufficient scope to address the common investor confusion arising in the Australian context surrounding unit trusts, co-operatives and similar entities. Many of these entities may still classify their 'equity' as a liability, even if the proposals go ahead.

Affected entities have until 22 September 2006 to make a submission to the Australian Accounting Standards Board. Click to:

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.