On 31 July 2018, the International Financial Reporting Standards (IFRS) has released both webcast and slides on FICE Discussion Paper to:
- Classification of compound instruments and redemption obligation arrangements; and
- Classification of derivatives on own equity
A fourth webcast presentations jointly done by Technical Director Kumar Dasgupta and Technical Manager Uni Choi of the International Accounting Standards Board (IASB) to explain Section 5 of the Discussion Paper Financial Instruments with Characteristics of Equity on compound instruments and redemption, and it is the last one in the series that focuses on the classification section of the Discussion Paper.
It speak about the IASB’s preferred approach to classification of compound instruments, such as convertible bonds, and obligations to redeem own equity instruments, for example a written put option on own shares. They use different examples to illustrate how the classification would be determined.
The webcasts in a series to date have covered:
- overview of the Discussion Paper;
- the IASB’s preferred approach and classification of non-derivative financial instruments; and
- classification of derivatives on own equity;
More information on the webcast and slides can be viewed from the IFRS website.
Source: IFRS, 3 August 2018