AASB ED 327 Financial Instruments with Characteristics of Equity

Tuesday, December 5, 2023

AASB ED 327 proposes amendments to Australian Accounting Standards to address the existing challenges in financial reporting on financial instruments with characteristics of equity and improve the information provided about financial liabilities and equity instruments.

The AASB is proposing amendments to AASB 132 Financial Instruments – Presentation, AASB 7 Financial Instruments – Disclosures and AASB 101 Presentation of Financial Statements to provide:

• clarification of the underlying classification principles of AASB 132 to help entities distinguish between financial liabilities and equity;
• disclosures to further explain complexities around instruments that have both financial liability and equity characteristics; and
• presentation requirements for amounts – including profit and total comprehensive income – attributable to ordinary shareholders separately from amounts attributable to other holders of equity instruments.

The AASB’s proposed amendments are the same as those proposed by the IASB to IFRS Standards.

Please submit your comments to the AASB by 9 February 2024, via the AASB website or email [email protected].