Contents
- Access the standard
- Summary
- Current proposals
- Recent amendments
- Related IFRIC interpretations
- eBooks
- Other resources
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Access the standard
- 2023 Issued Standard – IAS 32
The 2023 Issued Standards include all amendments issued up to and including 1 January 2023.
Registration is required to access the free version of the Issued Standards, which do not include additional documents that accompany the full standard (such as illustrative examples, implementation guidance and basis for conclusions).
Summary
IAS 32 classifies financial instruments into financial assets, financial liabilities and equity in accordance with the substance of the arrangement and the definitions of these elements. In certain cases, such as convertible debt, the instrument is split into a liability and equity element. Financial assets and liabilities may only be offset where there is a legally enforceable right to offset and the entity intends to settle on a net basis. Any treasury shares are deducted from equity.
Interest, dividends, losses and gains related to a financial liability are recognised in profit or loss; dividends in relation to equity instruments are recognised directly in equity.
Current proposals
- Financial Instruments with Characteristics of Equity
The IASB is engaged in a research project to investigate potential improvements to the classification of liabilities and equity and the presentation and disclosure requirements for financial instruments with the characteristics of equity regardless of whether they are classified as equity or liabilities. A discussion paper DP/2018/1 Financial Instruments with Characteristics of Equitywas issued in June 2018 and the next stage is expected to be an exposure draft.
Recent amendments
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Related IFRIC interpretations
IFRIC 2 Members’ Shares in Co-operative Entities and Similar Instruments IFRIC 2 provides guidance on classifying members’ shares in co-operative entities as financial liabilities or equity.
IFRIC 12 Service Concession Arrangements IFRIC 12 provides accounting guidance for arrangements where a contract is granted for the supply of public services such as roads.
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments IFRIC 19 addresses the accounting by an entity which issues equity instruments in order to settle, in full or part, a financial liability.
eBooks
The ICAEW Library & Information Service provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact [email protected].
Exclusive Financial instruments
- eBook chapter
- 2023
- PKF International Ltd
- Wiley Interpretation and Application of IFRS Standards
Updated edition providing a detailed reference guide with practical examples, and IFRIC interpretations and directions. This chapter discusses IFRS 7, IFRS 9, IAS 32 and IAS 39.
Exclusive Financial instruments: Presentation and disclosure
- eBook chapter
- 2021
- Ernst & Young LLP
- International GAAP - Generally Accepted Accounting Practice under International Financial Reporting Standards
A global perspective on technical accounting issues with worked examples and illustrations from published financial reports of major listed companies from around the world. This chapter discusses IFRS 7 and IAS 32.
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Other resources
- Website
- Deloitte
Overviews of each international accounting standard, with a history and timeline of key events and amendments.
IFRS model accounts and disclosure checklists Many illustrative financial statements and checklists are available online, providing example presentation and disclosure formats for preparers of IFRS accounts. We’ve compiled a list of regularly updated free sources for model accounts.
International GAAP 2024: The global perspective on IFRS
- Website
- EY
Detailed guide on interpreting and implementing IFRS, with illustrative examples and extracts from financial statements. The manual is available online (free registration required) as part of EY Atlas Client Edition.
Corporate reporting resources
Practical resources including factsheets, online guides and webinars on financial and non-financial reporting.
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