The Board published the exposure draft Financial Instruments Puttable at Fair Value and Obligations arising on Liquidation in June 2006. The comment period ended in October 2006. An analysis of the 87 comment letters received was presented to the Board in January 2007. Since then the Board has deliberated issues raised by respondents. In November 2007 the Board held two public round-table discussions to consider a staff draft of the proposed amendments.
At this meeting, the Board discussed and clarified one particular feature that a puttable instrument must have in order to be classified as an equity instrument. The Board clarified that the total expected cash flows attributable to each puttable instrument over the life of the instrument (rather than the class of puttable instruments over the life of the class) must be based substantially on the profit or loss, the change in the recognised net assets or the change in the fair value of the recognised and unrecognised net assets of the entity over the life of the instrument (excluding any effects of the instrument itself). The Board expects to issue the amendments in the next few weeks.