On 29 November 2023 the IASB published for public comment the Exposure Draft Financial Instruments with Characteristics of Equity–Proposed amendments to IAS 32 Financial Instruments: Presentation, IFRS 7 Financial Instruments: Disclosures, and IAS 1 Presentation of Financial Statements.The IASB has responded to feedback from investors and others and has considered previous work on the topic. The proposals in the Exposure Draft include:
• clarification of the underlying classification principles of IAS 32 to help companies distinguish between financial liabilities and equity;
• disclosures to further explain complexities around instruments that have both financial liability and equity characteristics; and
• presentation requirements for amounts—including profit and total comprehensive income—attributable to ordinary shareholders separately from amounts attributable to other holders of equity instruments.
The IASB is now calling for feedback on the proposals in the Exposure Draft with a comment deadline of 29 March 2024.
On 15 January, EFRAG published its draft comment letter (DCL) on the IASB’s ED/2023/5 Financial Instruments with Characteristics of Equity