Global Standards for the world economy

Tuesday 30 May 2017

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Meeting summaries and observer notes

 IASB September 2011



On the recommendation of the IFRS Interpretations Committee, the IASB discussed a possible scope exclusion to IAS 32 for put options written over the non-controlling interest in the consolidated financial statements of a group. The objective of the scope exclusion would be to address a potential inconsistency between the requirements of IAS 32, IAS 39 and IFRS 9 for measuring financial liabilities and the requirements in IAS 27 and IFRS 10 for accounting for transactions with owners in their capacity as owners; that is, whether the offsetting entry for subsequent measurement changes should be to profit or loss or to equity. The Board voted not to amend the scope of IAS 32 to exclude these put options over non-controlling interests. However, they expressed support for considering addressing the potential inconsistency, not by changing the measurement basis of the non-controlling interest, but by clarifying the accounting for subsequent changes in the measurement of such puts. They asked the staff to obtain feedback from the Interpretations Committee on how they wish to be involved in further considering this issue.


Date: 9/20/2011