Deloitte comment letter on tentative agenda decision on IAS 32 — Written puts over non-controlling interests to be settled by a variable number of the parent’s shares

Published on: 22 Jul 2016

We have commented on the IFRS In­ter­pre­ta­tions Committee's pub­li­ca­tion in the May IFRIC Update of the tentative decision not to take onto the Committee's agenda the request for guidance on written puts over non-controlling interests that will, or may, be settled by the exchange of a variable number of the parent’s own equity instruments.

We do not agree with the IFRS In­ter­pre­ta­tions Committee's decision not to add this item onto its agenda because it will (1) promote structuring and increase diversity in practice over what is likely to be a significant period of time before the FICE project is completed and (2) general comments on NCI puts in the tentative agenda decision could give rise to ‘contamination’ and bring uncertainty and diversity into what is now a largely consistent practice around more traditional, cash-settled, NCI put arrangements.

Download the full comment letter below.


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