Financial Instruments Presentation (IAS 32/AASB 132)

Corporate Reporting Insights

BDO's monthly newsletter, Corporate Reporting Insights, keeps you up to date with the latest Australian and global developments in corporate financial and sustainability reporting.

• IASB releases exposure draft – Financial Instruments with Characteristics of Equity (December 2023)
• Three new agenda decisions from the IFRS Interpretations Committee (August 2022)
• Recent agenda decisions of the IFRS Interpretations Committee (November 2021).

BDO Global IFRS Resources

The following publications have been produced by the BDO Global IFRS group:

► IFRS at a Glance

A high level overview of International Financial Reporting Standards (IFRSs), including International Accounting Standards and Interpretations.

• IAS 32 Financial Instruments: Presentation
• IFRIC 2 Members' Shares in Co-operatives and Similar Instruments
• IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments.

► IFRS in Practice

Practical information about the application of key aspects of IFRS, including industry specific guidance.

• Accounting for convertible notes​ (December 2022).

Webinars

BDO Australia conducts monthly complimentary webinars as an easy way to stay up to date with changes to accounting standards and other financial reporting developments. Recent webinars on this topic include:

• Increased complexity when accounting for convertible notes (August 2023)
• Demystifying financial instruments (December 2022)
• Accounting for convertible notes​ (July 2021).

IFRIC agenda decisions

IFRS Interpretations Committee (the Committee) agenda decisions are those issues that the Committee decided not to take onto its agenda. Although not authoritative guidance, in practice they are regarded as being highly persuasive, and all entities reporting under IFRS should be aware of these decisions because they could impact the way particular transactions and balances are accounted for. Agenda decisions on this topic include:

• Special purpose acquisition companies (SPACs): Accounting for warrants at acquisition (September 2022)
• Special purpose acquisition companies (SPACs): Classification of public shares as financial liabilities or equity (July 2022) and FAQ
• Accounting for warrants that are classified as financial liabilities on initial recognition (October 2021) and eLearning and FAQ
• Written put options over non-controlling interests to be settled via a variable number of the parent’s shares (November 2016)
• Repayable cash recei​pts (May 2016) and FA​Q
• Offsetting and cash-pooling arrangements (March 2016) and FAQ
• Classification of liability for a prepaid card in the issuer’s financial statements (March 2016) and FAQ
• Mandatorily convertible financial instruments (May 2014) and FAQ
• Mandatorily convertible financial instruments (January 2014) and FAQ
• Early settlement option on a mandatorily convertible financial instrument (January 2014)
• Classification of puttable instruments that are non-controlling interests (November 2013) and FAQ
• Financial instruments that give the issuer the contractual right to choose the form of settlement (September 2013) and FAQ
• Shareholder discretion (March 2010) and FAQ
• Application of the ‘fixed for fixed’ condition (January 2010)
• Classification of puttable and perpetual instruments (March 2009) and FAQ
• Transaction costs (September 2008) and FAQ
• Deposits on returnable containers (May 2008) and FAQ
• Foreign currency instruments exchangeable into equity instruments of the parent entity of the issuer (November 2006)
• Changes in the contractual terms of an existing equity instrument resulting in it being reclassified to a financial liability (November 2006) and FAQ
• Contractual obligations and economic compulsion in the classification of financial instruments (November 2006) and FAQ
• Puts and forwards held by minority (non-controlling) interests (November 2006)
• Employee long service leave (November 2005) and FAQ
• Own shares that are held for trading purposes​ (August 2002).