The International Accounting Standards Board (IASB) published the Exposure Draft Financial Instruments with Characteristics of Equity. The IASB has proposed amendments to address the existing challenges in companies’ financial reporting on financial instruments with characteristics of equity.
The proposals in the Exposure Draft would amend IAS 32 Financial Instruments: Presentation, IFRS 7 Financial Instruments: Disclosures, and IAS 1 Presentation of Financial Statements.
The proposals include:
The comment period closed on 29 March 2024. The IASB will discuss feedback at future meetings.
The IASB met on 24 July 2025 to continue redeliberating the Exposure Draft Financial Instruments with Characteristics of Equity. The IASB discussed:
The IASB tentatively decided to withdraw the requirements proposed in the Exposure Draft related to the effects of relevant laws or regulations on the classification of financial instruments.
All 13 IASB members agreed with this decision.
The IASB discussed a summary of the feedback on the requirements proposed in the Exposure Draft related to reclassification of financial liabilities and equity instruments.
The IASB was not asked to make any decisions.
Final Amendments
International Accounting Standards Board July 2025