Deloitte comment letter on IFRS Interpretations Committee tentative agenda decision: IAS 39 — Income and expenses arising on financial instruments with a negative yield – presentation in the statement of comprehensive income

Published on: 28 Nov 2012

We agree with the IFRS Interpretations Committee’s decision not to add this item onto its agenda but do not believe that the absolute position taken (i.e. that these amounts are neither interest income nor interest expense) is appropriate as it assumes that the negative yield results from the issuer charging a custodian fee for safeguarding the holder’s money. This may not be the case in every scenario as there might be other circumstances leading to a negative yield.


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