• IAS 32 Financial Instruments: Presentation and Disclosure


  • IFRIC D8 Issued 30 June 2004
  • Comment Deadline 13 September 2004
  • The draft Interpretation was available publicly on the IASB's Website during the comment period.
  • Click for Press Release (PDF 23k).
  • IFRIC Interpretation 2 Members’ Shares in Co-operative Entities and Similar Instruments was issued 25 November 2004. Click for Press Release (PDF 23k).

Deloitte Letter of Comment on IFRIC D8

Important: IFRIC D8 resulted in the final IFRIC Interpretation 2, issued in November 2004. The information on this page reflects the IFRIC's discussions during the development of the final interpretation, including tentative decisions that were changed along the way. We have retained this page for historical purposes only.

Summary of IFRIC D8

D8 addresses how the principles in IAS 32 for classifying financial instruments as liabilities or equity apply to instruments issued by co-operatives and other entities that give the holder the right to request redemption. D8 proposes that if members' shares would be classified as equity in the absence of the members' right to request redemption, then such shares are equity if either of the following conditions is met:

  • The entity has an unconditional right to refuse redemption of the members' shares.
  • Local law, regulation, or the entity's governing charter unconditionally prohibits the redemption of members' shares.

However, if neither of those conditions is met, the shares are reported as financial liabilities. D8 further proposes that members' shares classified as financial liabilities that are redeemable on demand should be measured at the maximum amount that might become payable under the redemption provisions of the entity's governing charter or applicable law.

Correction list for hyphenation

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