ANNEX

IFRIC INTERPRETATION 2 Members’ Shares in Cooperative Entities and Similar Instruments

APPENDIX

EXAMPLES OF APPLICATION OF THE CONSENSUS

UNCONDITIONAL RIGHT TO REFUSE REDEMPTION (paragraph 7)

Example 1

Classification

A3 The entity has the unconditional right to refuse redemption and the members’ shares are equity. IAS 32 establishes principles for classification that are based on the terms of the financial instrument and notes that a history of, or intention to make, discretionary payments does not trigger liability classification. Paragraph AG26 of IAS 32 states:
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Repealed by Commission Regulation (EC) No 1126/2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (Text with EEA relevance).