More progress has been made on the IASB’s project on financial instruments with characteristics of equity.
After the project restarted in earnest last month, the Board has begun identifying the features of claims that are relevant to distinguishing between liabilities and equity.
“The project has made progress by identifying the relevant features in measuring claims. The next challenge is to explore how these features affect users’ information needs.”
For more detail on these discussions, read Issue 24 of our IFRS Newsletter: Financial Instruments.
As a first step, at its June meeting the Board discussed the features that are relevant in measuring the claims – namely, the:
The next step will be to analyse the relevance of the identified features for assessments that users might make using different parts of financial statements.
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