F1ANNEXINTERNATIONAL ACCOUNTING STANDARDS

Annotations:
Amendments (Textual)
F1

Regulation revoked (31.12.2020) by The International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/685), reg. 1(2), Sch. 2 para. 1 (with reg. 20(2)) (as amended by S.I. 2020/335, regs. 1, 5); 2020 c. 1, Sch. 5 para. 1(1)

F1INTERNATIONAL ACCOUNTING STANDARD 32Financial instruments: presentation
F1AppendixAPPLICATION GUIDANCE

IAS 32 Financial instruments: presentation

F1PRESENTATION

F1Liabilities and equity (paragraphs 15-27)

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F1No contractual obligation to deliver cash or another financial asset (paragraphs 17-20)

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F1AG25

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F1AG26When preference shares are non-redeemable, the appropriate classification is determined by the other rights that attach to them. Classification is based on an assessment of the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. When distributions to holders of the preference shares, whether cumulative or non-cumulative, are at the discretion of the issuer, the shares are equity instruments. The classification of a preference share as an equity instrument or a financial liability is not affected by, for example:

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F1Settlement in the entity's own equity instruments (paragraphs 21-24)

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F1 AG27 The following examples illustrate how to classify different types of contracts on an entity’s own equity instruments:

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F1Contingent settlement provisions (paragraph 25)

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F1AG28

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F1Treatment in consolidated financial statements

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F1 AG29

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F1 AG29A

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