This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our PRIVACY POLICY for more information on the cookies we use and how to delete or block them.
  • IFRIC Update May 2017

IFRIC Update May 2017

10 May 2017

The May issue of IFRIC Update has been published

The Update summarises the decision reached by the IFRS Interpretations Committee (IC) at their meeting on 3rd May.  At the meeting, one tentative agenda decision was reached on IFRS 9 Financial Instruments relating to financial assets eligible for the election to present changes in fair value in other comprehensive income.

An issuer of a financial instrument that meets the conditions specified in paragraphs 16A and 16B or 16C and 16D of IAS 32 Financial Instruments: Presentation presents that instrument as equity notwithstanding that it meets the definition of a financial liability.  The IC received a request to clarify whether the holder of such an instrument is permitted to make the election in paragraph 4.1.4 of IFRS 9 available to equity investments and account for changes in its fair value through other comprehensive income.

The IC concluded that such an investment is not eligible for the presentation election because it does not meet the definition of an equity investment in IAS 32, albeit that the issuer may present it as an equity instrument.  The IC concluded that the requirements in IFRS 9 provide an adequate basis for the holder described in the submission to classify such instruments and therefore decided not to add this matter to its agenda.

Further information, including copies of IFRIC Update, are available from the IASB web site here.