The main objective is to identify the characteristics that should be present in an instrument for it to be classified as either an equity or liability instrument. In particular, the interpretation of the fixed-for-fixed requirement in
endstream endobj 429 0 obj <> endobj 430 0 obj <>stream The purpose of this session was to continue discussions on the Financial Instruments with Characteristics of Equity (FICE) project.
0000011374 00000 n In particular, the staff explored as part of this discussion what clarifications could be made to the underlying principle of the fixed-for-fixed condition. On reactivating this project as an IASB-only project in December 2012, the IASB decided this project should be undertaken in conjunction with the comprehensive conceptual framework project. It concludes with a proposal of potential ways forward.
Financial Market and its Characteristics: In the economic sense, investment means the commitment of funds to capital assets. In this session, the IASB discussed the challenges with accounting for derivatives on ‘own equity’ and how IAS 32 addresses those challenges. 0000005956 00000 n The agenda paper introduces the topic by examining why the topic is relevant. Accordingly, the investors are users of funds that they own or acquire in the market.
The International Financial Reporting Standards Foundation is a not-for-profit corporation incorporated in the State of Delaware, United States of America, with the Delaware Division of Companies (file no: 3353113), and is registered as an overseas company in England and Wales (reg no: FC023235).
endstream endobj 419 0 obj <>/Metadata 84 0 R/Names 420 0 R/Outlines 43 0 R/PageLayout/OneColumn/Pages 78 0 R/StructTreeRoot 86 0 R/Type/Catalog>> endobj 420 0 obj <> endobj 421 0 obj <>/Font<>>>/Rotate 0/StructParents 0/Type/Page>> endobj 422 0 obj <> endobj 423 0 obj <> endobj 424 0 obj <> endobj 425 0 obj <> endobj 426 0 obj [/ICCBased 448 0 R] endobj 427 0 obj <> endobj 428 0 obj <>stream Accordingly, this project is expected to: During their joint meeting in November 2010, the IASB and FASB decided to defer further work on this project.
At this meeting, the staff would like the Board to deliberate the overall objectives of the clarifying amendments to IAS 32, classification, and presentation and disclosure.
This type of instruments has not been discussed by the Board before and was identified during the review of a pre-ballot draft of the Financial Instruments with Characteristics of Equity Discussion Paper.
Each word should be on a separate line.
0000006832 00000 n
The Board was asked to comment on the staff analysis and their recommendations. © IFRS Foundation 2017. In this meeting, the following issues were discussed: (i) attribution of profit or loss and other comprehensive income to classes of equity claims other than ordinary shares and (ii) feedback from the IASB’s agenda consultation. 0000008403 00000 n 0000002225 00000 n H�\�͊�0��~ 0000005058 00000 n Or in simple words, these instruments are securities that we link to other securities.
465 0 obj <>stream This project was originally commenced as a joint IASB-FASB project addressing the distinction between liabilities and equity.
0000127953 00000 n The Board discussed the main developments in the research programme since April 2019.
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As a next step, the paper considers the relevant requirements of IAS 32, especially the fixed-for-fixed condition and the redemption obligation requirements. The Board discussed (1) subclasses of liabilities, including presenting income and expense arising from particular types of liabilities; (2) attribution of profit or loss and other comprehensive income to subclasses of equity; and (3) claims with conditional alternative settlement outcomes.
0000002744 00000 n
H�\��n�@��y��L. This was an information session and the Board was not being asked to make any decisions. 0000188665 00000 n 0000211948 00000 n This session marked the end of the technical deliberations of the Financial Instruments with Characteristics of Equity (FICE) project.
The staff gave a brief update on the research programme since the last update, provided in the Board’s meeting in January 2020.
0000193072 00000 n
The paper for this session presents the key themes emerging from feedback received on the Discussion Paper. 0000014254 00000 n
0000009338 00000 n These words serve as exceptions.
At this meeting, the staff sets out alternatives the Board could choose for the direction of the project, and explains what each alternative would entail, advantages and disadvantages of these alternatives and indicative timelines. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox. Financial instruments with characteristics of equity Discussion Paper issued for comment by the International Accounting Standards Board in June 2018. "0��$��؉���n ��E���߾{8Q*����|g����n?��˿DZ=�ٝ����:�b�1��! o���َR����F�t�Eh@��_��`,��'~c��t��ҍw/&2ki��\&��d,vr(��_zf@�RV}���5�h�JFj$>ʇ�ƻN���. h�b```b``�a`c``Qab@ !V�(� Session expired, please refresh your browser. This site uses cookies to provide you with a more responsive and personalised service. Accessibility | Privacy | Terms and Conditions | Trade mark guidelines | All legal information | Using our website.
0000005327 00000 n 0000010316 00000 n The Board discussed to what extent the requirements in IAS 32 captured the features needed to make the assessments the Board identified in the previous meeting and whether there were any exceptions, inconsistencies or gaps in those requirements. In this session, the Staff discussed potential ways to provide useful information about non-derivative instruments with equity hosts with complex payoffs. By using this site you agree to our use of cookies. hyphenated at the specified hyphenation points. Derivative instruments.
the risk, there are various ways of investing in financial instruments. - highlighted that accounting diversity in practice is more significant and widespread than expected by the Board. pQ(SPP��QPP.�▖S-( These instruments should then have characteristics that involve a spread of risk,
0000188735 00000 n A discussion paper DP/2018/1 Financial Instruments with Characteristics of Equity was published on 28 June 2018.
0000193400 00000 n In December 2012, as part of its response to the Agenda consultation 2011, the IASB formally reactivated this project as an IASB-only research project.
Board discussions were taken up in October 2014. 418 48