IAS32/AASB132: Financial Instruments Presentation - Liability or equity?
"Liability or equity? A practical guide to the classification of financial instruments under IAS 32".
When an entity issues a financial instrument, it must determine its classification either as a liability (debt) or as equity. That determination has an immediate and significant effect on the entity's reported results and financial position. IAS 32 Financial Instruments: Presentation (IAS 32) addresses this classification process. Although IAS 32's approach is founded upon principles, its outcomes can sometimes seem surprising. This Guide reflects the collective experience of Grant Thornton International’s IFRS team and member firm IFRS experts. It addresses IAS 32’s key application issues and includes interpretational guidance in certain problematic areas.