30 November 2023To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON THE IASB EXPOSURE DRAFTFinancial Instruments with Characteristics of Equity– Proposed amendments to IAS 32, IFRS 7 and IAS 1Comments to be received by 19 February 2024The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute of Certified PublicAccountants (Institute) is seeking comments on the International Accounting Standards Board (IASB)
Exposure Draft Financial Instruments with Characteristics of Equity – Proposed amendments to IAS32 Financial Instruments: Presentation, IFRS 7 Financial Instruments: Disclosures and IAS 1Presentation of Financial Statements. The Exposure Draft, together with a snapshot and a short videoproviding a high-level summary of the proposals, is available on the Institute's website:
https://www.hkicpa.org.hk/en/Standards-setting/Standards/Open-for-comment-documents/fredIAS 32 sets out how a company that issues financial instruments should distinguish debt instrumentsfrom equity instruments. The distinction is important because the classification of the instrumentsaffects the depiction of a company’s financial position and performance. IAS 32 works well for mostfinancial instruments. However, financial instruments have evolved to be more complex since IAS 32was initially issued and present new reporting challenges for companies. Companies’ solutions to thereporting challenges differ, resulting in diverse accounting practices that make it difficult for investorsto assess and compare companies’ financial position and performance. In addition, investors arecalling for better information, particularly about equity instruments.To address these challenges, the IASB proposes to:
clarify the underlying classification principles of IAS 32 to help companies distinguish betweendebt and equity;
require companies to provide disclosures that further explain the complexities of instruments thathave both debt and equity characteristics; andadd new presentation requirements for amounts – including profit and total comprehensiveincome – attributable to ordinary shareholders separately from the amounts attributable to otherholders of equity instruments.The FRSC invites your comments on the Exposure Draft by 19 February 2024 to allow yourcomments to be considered in developing its response to the IASB. Comments should be supportedby specific reasoning and should be submitted in written form.Comments may be sent by mail, fax or e-mail to:
Standard Setting DepartmentHong Kong Institute of Certified Public Accountants37th Floor, Wu Chung House213 Queen’s Road EastWanchai, Hong KongFax number (+852) 2865 6603E-mail: commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unless otherwiserequested by the respondent.
Invitation to Comment on IASB Exposure Draft on Financial Instruments with Characteristics of Equity - Proposed amendments to IAS 32, IFRS 7 and IAS 1
下载原件30 November 2023To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON THE IASB EXPOSURE DRAFTFinancial Instruments with Characteristics of Equity– Proposed amendments to IAS 32, IFRS 7 and IAS 1Comments to be received by 19 February 2024The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute of Certified PublicAccountants (Institute) is seeking comments on the International Accounting Standards Board (IASB)
Exposure Draft Financial Instruments with Characteristics of Equity – Proposed amendments to IAS32 Financial Instruments: Presentation, IFRS 7 Financial Instruments: Disclosures and IAS 1Presentation of Financial Statements. The Exposure Draft, together with a snapshot and a short videoproviding a high-level summary of the proposals, is available on the Institute's website:
https://www.hkicpa.org.hk/en/Standards-setting/Standards/Open-for-comment-documents/fredIAS 32 sets out how a company that issues financial instruments should distinguish debt instrumentsfrom equity instruments. The distinction is important because the classification of the instrumentsaffects the depiction of a company’s financial position and performance. IAS 32 works well for mostfinancial instruments. However, financial instruments have evolved to be more complex since IAS 32was initially issued and present new reporting challenges for companies. Companies’ solutions to thereporting challenges differ, resulting in diverse accounting practices that make it difficult for investorsto assess and compare companies’ financial position and performance. In addition, investors arecalling for better information, particularly about equity instruments.To address these challenges, the IASB proposes to:
clarify the underlying classification principles of IAS 32 to help companies distinguish betweendebt and equity;
require companies to provide disclosures that further explain the complexities of instruments thathave both debt and equity characteristics; andadd new presentation requirements for amounts – including profit and total comprehensiveincome – attributable to ordinary shareholders separately from the amounts attributable to otherholders of equity instruments.The FRSC invites your comments on the Exposure Draft by 19 February 2024 to allow yourcomments to be considered in developing its response to the IASB. Comments should be supportedby specific reasoning and should be submitted in written form.Comments may be sent by mail, fax or e-mail to:
Standard Setting DepartmentHong Kong Institute of Certified Public Accountants37th Floor, Wu Chung House213 Queen’s Road EastWanchai, Hong KongFax number (+852) 2865 6603E-mail: commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unless otherwiserequested by the respondent.