F1ANNEX

Annotations:

F1IFRIC INTERPRETATION 2Members’ Shares in Cooperative Entities and Similar Instruments

APPENDIX

EXAMPLES OF APPLICATION OF THE CONSENSUS

UNCONDITIONAL RIGHT TO REFUSE REDEMPTION (paragraph 7)

Example 1

Classification

F1A3The 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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