Financial Instruments – Moving the FICE project forward

Financial Instruments – Moving the FICE project forward

This IFRS newsletter reports on the IASB’s September discussions on financial instruments.

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We summarise the IASB’s latest discussions on its project on financial instruments with characteristics of equity.

Further progress has been made in exploring presentation and disclosure requirements.

The discussions continue…

At its September meeting, the Board continued its discussions on financial instruments with characteristics of equity (the ‘FICE project’), having previously considered how to apply the Gamma approach1  to: the classification of derivatives on own equity, asset/equity exchange derivatives and liability/equity exchange derivatives.

The Board focused its discussion on:

  • the presentation of specific types of derivatives classified as liabilities; and
  • how disclosures could complement approaches to classification and presentation

 

“The effort to supplement a binary classification approach with presentation and disclosure improvements is a welcome step in moving the FICE project forward.” 

Chris Spall

KPMG’s global IFRS financial instruments leader

 

The macro hedge accounting project was not discussed during the September meeting. For more detail on these discussions, read Issue 32 of our IFRS Newsletter: Financial Instruments.

Next steps for the project

The next steps for the project will be to consider: 

  • classification of instruments meeting the existing puttables exception; 
  • accounting for conditional alternative settlement outcomes; and
  • recognition, derecognition and reclassification of equity instruments.

Find out more

Visit our IFRS Newsletters page for the latest discussions on these issues.

And go to our IFRS – Financial instruments hot topics page for more on these and other aspects of financial instruments accounting under IFRS.

 

1 See September 2015 IFRS Newsletter: Financial Instruments. 

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