Further progress has been made in exploring ways to present useful information not captured by a binary classification approach.
At its April meeting, the Board discussed:
The Board was also provided with feedback from the 2015 Agenda Consultation. It was evident that current IAS 32 requirements continue to cause application challenges, especially for new instruments issued with complex terms.
“A binary classification approach cannot by itself portray all useful information. New presentation and attribution requirements could help address this shortfall but more work is needed to refine how they might apply.”
For more detail on these discussions, read Issue 29 of our IFRS Newsletter: Financial Instruments.
To move the project forward, the Board will consider refinements to the definition of the residual amount, including the fixed-for-fixed condition. It will also further consider the presentation of income and expense that depend on a residual amount in profit or loss or OCI, the attribution approaches for derivative equity claims and disclosure requirements for equity claims.
The macro hedge accounting project was not discussed during the April meeting.
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