Ias 32
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Summary of IAS 32
Objective of IAS 32
The stated objective of IAS 32 is to establish principles for presenting financial instruments as liabilities or equity and for offsetting financial assets and liabilities. [IAS 32.1]
IAS 32 addresses this in a number of ways: * clarifying the classification of a financial instrument issued by an entity as a liability or as equity * prescribing the accounting for treasury shares (an entity's own repurchased shares) * prescribing strict conditions under which assets and liabilities may be offset in the balance sheet
IAS 32 is a companion to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 9Financial Instruments. IAS 39 deals with, among other things, initial recognition of financial assets and liabilities, measurement subsequent to initial recognition, impairment, derecognition, and hedge accounting. IAS 39 is progressively being replaced by IFRS 9 as the IASB completes the various phases of its financial instruments project.
Scope
IAS 32 applies in presenting and disclosing information about all types of financial instruments with the following exceptions: [IAS 32.4] * interests in subsidiaries, associates and joint ventures that are accounted for under IAS 27Consolidated and Separate Financial Statements, IAS 28 Investments in Associates or IAS 31Interests in Joint Ventures (or, for annual periods beginning on or after 1 January 2013,IFRS 10 Consolidated Financial Statements, IAS 27 Separate Financial Statements and IAS 28Investments in Associates and Joint Ventures). However, IAS 32 applies to all derivatives on interests in subsidiaries, associates, or joint ventures. * employers' rights and obligations under employee benefit plans (see IAS 19 Employee Benefits) * insurance contracts(see IFRS 4 Insurance Contracts). However, IAS 32 applies to derivatives that are embedded in insurance contracts if they are required to be
Summary of IAS 32
Objective of IAS 32
The stated objective of IAS 32 is to establish principles for presenting financial instruments as liabilities or equity and for offsetting financial assets and liabilities. [IAS 32.1]
IAS 32 addresses this in a number of ways: * clarifying the classification of a financial instrument issued by an entity as a liability or as equity * prescribing the accounting for treasury shares (an entity's own repurchased shares) * prescribing strict conditions under which assets and liabilities may be offset in the balance sheet
IAS 32 is a companion to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 9Financial Instruments. IAS 39 deals with, among other things, initial recognition of financial assets and liabilities, measurement subsequent to initial recognition, impairment, derecognition, and hedge accounting. IAS 39 is progressively being replaced by IFRS 9 as the IASB completes the various phases of its financial instruments project.
Scope
IAS 32 applies in presenting and disclosing information about all types of financial instruments with the following exceptions: [IAS 32.4] * interests in subsidiaries, associates and joint ventures that are accounted for under IAS 27Consolidated and Separate Financial Statements, IAS 28 Investments in Associates or IAS 31Interests in Joint Ventures (or, for annual periods beginning on or after 1 January 2013,IFRS 10 Consolidated Financial Statements, IAS 27 Separate Financial Statements and IAS 28Investments in Associates and Joint Ventures). However, IAS 32 applies to all derivatives on interests in subsidiaries, associates, or joint ventures. * employers' rights and obligations under employee benefit plans (see IAS 19 Employee Benefits) * insurance contracts(see IFRS 4 Insurance Contracts). However, IAS 32 applies to derivatives that are embedded in insurance contracts if they are required to be