Show Sections

Final stage

On 14 February 2008, the International Accounting Standards Board issued Puttable Financial Instruments and Obligations Arising on Liquidation (Amendments to IAS 32 and IAS 1). The amendments have an effective date of 1 January 2009, but earlier adoption is permitted. 

The amendments classify the following types of financial instruments as equity, provided they have particular features and meet specific conditions:

  • puttable financial instruments (for example, some shares issued by co-operative entities)
  • instruments, or components of instruments, that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation (for example, some partnership interests and some shares issued by limited life entities)