Global Standards for the world economy

Sunday 26 February 2017

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Financial instruments with characteristics of equity

Meeting summaries and observer notes

 IASB January 2010



The boards decided not to adopt any of the approaches that they have previously considered. Instead, they directed the staff to analyse a possible amendment to IAS 32 Financial Instruments: Presentation. The effects of that possible amendment have not yet been specified but the following are some possibilities:

  • A requirement to classify as equity shares puttable only if specified certain events occur, such as the death or retirement of the holder
  • A requirement to separate some puttable shares into equity and liability components
  • A slight relaxation of the provision that to qualify as equity, a financial instrument involving exchanges of equity instruments for cash must require an exchange of a fixed number of shares for a fixed amount of cash.

Date: 1/18/2010