ESMA calls for restarting the project on equity and liabilities

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27 Sep 2012

The European Securities and Markets Authority (ESMA) has published to its website a comment letter to the IASB on Draft IFRIC Interpretation DI/2012/2 'Put Options Written on Non-controlling Interests'. In the comment letter ESMA suggests restarting the project on financial instruments with characteristics of equity.

ESMA encourages the IFRS Interpretations Committee and the IASB to continue with an interpretation to address the exisiting convergence in practice. However, ESMA also warns that the draft interpretation published in May 2012 does not cover all non-controlling interests and related instruments. ESMA suggests that the remaining elements be addressed as part of a comprehensive project. The comment letter says:


[W]e believe that this can be achieved as part of the financial instruments with characteristics of equity project which the Board should restart with high priority.

ESMA had already called for restarting the project in its response to the IASB's agenda consultation. Please click for access to the comment letter (link to ESMA website).

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