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The International Accounting Standards Board (IASB) published the Exposure Draft Financial Instruments with Characteristics of Equity. The IASB has proposed amendments to address the existing challenges in companies’ financial reporting on financial instruments with characteristics of equity.
The proposals in the Exposure Draft would amend IAS 32 Financial Instruments: Presentation, IFRS 7 Financial Instruments: Disclosures, and IAS 1 Presentation of Financial Statements.

The proposals include:

  • clarification of the underlying classification principles of IAS 32 to help companies distinguish between financial liabilities and equity;
  • disclosures to further explain complexities around instruments that have both financial liability and equity characteristics; and
  • presentation requirements for amounts—including profit and total comprehensive income—attributable to ordinary shareholders separately from amounts attributable to other holders of equity instruments.

The comment period closed on 29 March 2024. The IASB will discuss feedback at future meetings.

IASB® Update October 2024

The IASB met on 23 October 2024 to discuss:

  • feedback on the proposed presentation requirements and some of the proposed disclosure requirements set out in the Exposure Draft Financial Instruments with Characteristics of Equity;
  • an analysis of this feedback; and
  • potential changes to the proposed presentation and disclosure requirements in response to the feedback.

The IASB was not asked to make any decisions.

Next milestone

Final Amendments