The International Financial Reporting Interpretations Committee (IFRIC) has issued Draft Interpretation: IFRIC D25 Extinguishing Financial Liabilities with Equity Instruments to address the following issues:
- Are an entity’s equity instruments ‘consideration paid’ in accordance with IAS 39 paragraph 41?
- How should an entity initially measure the equity instruments issued to extinguish a financial liability?
- How should an entity account for any difference between the carrying amount of the financial liability extinguished and the initial measurement amount of the equity instruments issued?
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Invitation to comments
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ASB invites comments on the said Draft Interpretation from the public. The downloadable version of the Interpretation is available at http://www.iasb.org/NR/rdonlyres/974EE382-6274-4294-A92B-230D0504C26E/0/IFRICD25.pdf. Comments would be most helpful if they indicate the specific paragraph or group of paragraphs to which they relate, contain a clear rationale and, where applicable, provide a suggestion for alternative wording.
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Comments should be submitted in writing to the Secretary, Accounting Standards Board, The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi-110002, so as to be received not later than September 28, 2009. Comments can also be sent by e-mail at asb@icai.org or edcommentsasb@icai.org.
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