On or about 9 January 2019, the Accounting Standards Council (ASC) has submitted its comment letter to the International Accounting Standards Board (IASB) commended the IASB for its efforts in attempting to address the existing conceptual and application challenges associated with the classification of financial instruments as either financial liabilities or equity instruments. It gives strong support for the IASB’s approach in developing a single set of classification principles for financial liabilities and equity instruments, while complementing the classification with new presentation and disclosure requirements.
The ASC felt that it was unlikely that a fundamental review of IAS 32 could be justified on cost-benefit grounds.
The full comment letter can be downloaded from the ASC website.
Source: ASC, 9 January 2019.