Deloitte has responded to the IASB's discussion paper 'Financial Instruments with Characteristics of Equity' that was published in June 2018.
Deloitte does not support the preferred classification approach in the discussion paper and believes financial performance should be attributed to those holders of equity instruments that currently own a residual interest in the entity, not to those that hold instruments which may result in them being owners in the future. In addition, Deloitte disagrees that amounts due at liquidation are financial liabilities prior to liquidation and does not support the carry over of requirements in IAS 32 that future acquisitions of equity should be recognised as a gross financial liability with a debit in equity.
Full press release
Full comment letter
© Deloitte LLP
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article