Thursday 02 September 2010

Advanced search

Print Current Page
about us image

Press Releases

IASB amends the accounting for rights issues

08 October 2009

 

 

The International Accounting Standards Board (IASB) issued today an amendment to IAS 32 Financial Instruments: Presentation.

The amendment addresses the accounting for rights issues (rights, options or warrants) that are denominated in a currency other than the functional currency of the issuer. Previously such rights issues were accounted for as derivative liabilities. However, the amendment issued today requires that, provided certain conditions are met, such rights issues are classified as equity regardless of the currency in which the exercise price is denominated.

Further information

 

The global financial crisis has led to an increase in the number of such rights issues as entities seek to raise additional capital. The IASB has moved swiftly to address this issue.

Entities are required to apply the amendment for annual periods beginning on or after 1 February 2010, but earlier application is permitted. Classification of Rights Issues (Amendment to IAS 32) is available for eIFRS subscribers from today. Printed copies (ISBN 978-1-907026-40-9) will be available shortly, at £10 plus shipping, from:

IASC Foundation Publications Department,
30 Cannon Street, London EC4M 6XH, United Kingdom.
Tel: +44 (0)20 7332 2730 Fax +44 (0)20 7332 2749
Email: publications@iasb.org Web: www.iasb.org

Press enquiries

 

For press enquiries, please contact:

  • Mark Byatt, Director of Corporate Communications, IASB
    Telephone: +44 (0)20 7246 6472
    Email: mbyatt@iasb.org
  • Sonja Horn, Communications Adviser, IASB
    Telephone: +44 (0)20 7246 6463
    Email: shorn@iasb.org
Technical enquiries


For technical enquiries, please contact:

  • Michael Kraehnke, Practice Fellow, IASB
    Telephone: +44 (0)20 7246 6912
    Email: mkraehnke@iasb.org