Further progress has been made in exploring the implications of attributing profit or loss and OCI to derivative equity claims.
At its May meeting, the Board continued its April discussions on attribution approaches and explored another possible way to attribute profit or loss and OCI to derivative equity claims. The objective of this additional attribution approach would be to achieve a similar attribution to the attribution indirectly incorporated in the calculation of diluted EPS under IAS 33 Earnings per Share.
“Attributing profits to equity claims based on relative fair values may require more complex calculations and yield less intuitive results”
For more detail on these discussions, read Issue 30 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 in OCI and disclosure requirements for equity claims.
The macro hedge accounting project was not extensively discussed during the May meeting. However, the Board was provided with feedback from the 2015 Agenda Consultation
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