IASB: Reminder of comment deadline on Proposed amendments to IFRS 7, IAS 1 & IAS 32

IASB: Reminder of comment deadline on Proposed amendments to IFRS 7, IAS 1 & IAS 32

• 26 January 2024
• Accounting
• South African Accounting Academy

The proposed amendments address the challenges in companies’ financial reporting on instruments that have both debt and equity features.  

IAS 32 Financial Instruments: The presentation sets out how a company that issues financial instruments should distinguish debt instruments from equity instruments. The distinction is important because the classification of the instruments affects the depiction of a company’s financial position and performance.

In a nutshell, the IASB proposes:

• to clarify the underlying classification principles of IAS 32 to help companies distinguish between debt and equity;

• to require companies to disclose information to further explain the complexities of instruments that have both debt and equity features; and

• to issue new presentation requirements for amounts—including profit and total comprehensive income—attributable to ordinary shareholders separate from the amounts attributable to other holders of equity instruments.

Click here to download the Exposure Draft:

https://www.ifrs.org/content/dam/ifrs/project/fice/exposure-draft/iasb-ed-2023-5.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• As an auditor and independent reviewer, you must consider your clients’ compliance with accounting standards.

• As an accountant and compiler of financial statements, you need to consider amendments to standards issued by the standard-setting bodies, e.g. IASB, IAASB, etc.

Relevance to Your Clients:

• An entity compiling filing financials needs to consider amendments to standards issued by the standard-setting bodies, e.g. IASB, IAASB, etc.

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