Beyond the GAAP no. 174 – February 2023

Readers will recall that this project, based on a discussion paper published in June 2018, is intended to clarify the principles of IAS 32, to address the issues of its practical application and to improve disclosures. The exposure draft is expected in the second half of 2023.

At its February 2023 meeting, the International Accounting Standards Board (IASB) tentatively decided that financial instruments containing obligations for an entity to redeem its own equity instruments, including written put options on non-controlling interests (NCI), may only be remeasured through profit or loss. If made final, this decision would go against the current practice of entities that recognise changes in the exercise price of these instruments in group equity.