The International Accounting Standards Board (IASB) tentatively decided to explore making clarifying amendments to IAS 32 Financial Instruments: Presentation to address common accounting challenges that arise in practice when applying IAS 32. The IASB aims to address those challenges by clarifying some underlying principles in IAS 32 and adding application guidance to facilitate consistent application of those principles. In addition, it intends to further develop some presentation and disclosure requirements. The IASB'S tentative decisions were made after considering feedback on the Discussion Paper Financial Instruments with Characteristics of Equity, which was published in June 2018.
The Discussion Paper set out the IASB'S preferred approach to classification of a financial instrument, as a financial liability or an equity instrument, from an issuer’s perspective. The IASB also explored enhanced presentation and disclosure requirements that would provide further information about financial instruments’ effects on an issuer's financial position and financial performance.
The IASB met on 24 May 2023 to discuss:
Subsidiaries without public accountability—disclosures (Agenda Paper 5A)
The IASB tentatively decided to propose consequential amendments to be made to the IFRS Accounting Standard Subsidiaries without Public Accountability after it has been issued. The amendments would add to the Standard the following disclosure requirements that are to be proposed in the FICE exposure draft:
Nine of 14 IASB members agreed with the decisions in (b)(iv)–(viii). All 14 IASB members agreed with the other decisions.
Due process and permission to begin the balloting process (Agenda Paper 5B)
The IASB decided to set a comment period of 120 days for the FICE exposure draft.
All 14 IASB members agreed with this decision.
One IASB member indicated an intention to dissent from the proposals in the FICE exposure draft.
All 14 IASB members confirmed they were satisfied the IASB has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the FICE exposure draft.
Exposure Draft
International Accounting Standards Board May 2023