Exposure Draft – Financial Instruments with Characteristics of Equity

Regulatory Standard Edition: January 2024 | Published: January 16, 2024

The International Accounting Standards Board (IASB) issued an exposure draft proposing to amend International Accounting Standard (IAS) 32, Financial Instruments: Presentation; International Financial Reporting Standard (IFRS) 7, Financial Instruments: Disclosures and IAS 1, Presentation of Financial Statements, that would:

  • provide additional clarity on how to distinguish debt instruments from equity instruments;
  • require companies to disclose information to further explain the complexities of those instruments; and
  • require separate presentation for amounts, including profit and total comprehensive income, attributable to ordinary shareholders from amounts attributable to other holders of equity instruments.

The Canadian Accounting Standards Board is also expected to issue shortly an exposure draft, which corresponds to the IASB exposure draft.

Comments are requested by March 29, 2024.

For questions, please contact CPA Ontario’s Professional Advisory Services at 416 204.3106 or 1 800 387.0735, ext. 4456 or by email.