IFRIC 2 Members’ Shares in Co-operative Entities and Similar Instruments

Standard 2022 Issued
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Applying IFRIC 2, if a member of a cooperative entity has the right to request redemption of the member’s shares in the cooperative, the cooperative normally classifies those shares as a liability. However, the entity classifies those shares as equity if it has an unconditional right to refuse redemption or local law, regulation, or the entity's governing charter currently imposes prohibitions on redemption.

Standard history

In November 2004 the International Accounting Standards Board issued IFRIC 2 Members’ Shares in Co‑operative Entities and Similar Instruments. It was developed by the Interpretations Committee.

Other Standards have made minor consequential amendments to IFRIC 2. They include Annual Improvements to IFRSs 2009–2011 Cycle (issued May 2012), IFRS 13 Fair Value Measurement (issued May 2011), IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39) (issued November 2013) and IFRS 9  Financial Instruments (issued July 2014).