8-10-2009 | EFRAG requests comments on its initial assessments of the Amendment to IAS 32: Classification of Rights Issues

EFRAG is today issuing an Invitation to Comment relating to the endorsement for use in the EU of the amendment to IAS 32 Classification of Rights Issues. It is consulting both on its assessment of the Amendment against the EU endorsement criteria and on its initial assessment of the costs and benefits that would arise from the implementation of the Amendment in the EU. Comments are requested by 4 November 2009.
	The Amendment clarifies that foreign currency rights issues are equity instruments for the purposes of IAS 32 Financial Instruments: Presentation.  More specifically, rights, options or warrants to acquire a fixed number of the entity's own equity instruments for a fixed amount of any currency are equity if the entity offers the rights, options or warrants pro rata to all of its existing owners of the same class of its own non-derivative equity instruments.  EFRAG's initial assessment is that the Amendment meets the criteria for EU endorsement and that the benefits that will arise from its implementation in the EU are likely to exceed the costs incurred in implementing it.
Document : EFRAG Invitation to Comment on Draft Endorsement Advice_Classification of Rights Issues.doc
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