IAS 32Chapter 1Lesson 2
Scope: what falls outside IAS 32 and the link to IFRS 2
Step 1 of 6Learning objectives
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IAS 32 leaves some transactions to other standards, notably share-based payments (IFRS 2); contracts on non-financial items that can be settled net come within it unless they serve the entity's expected needs.
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Learning objectives
- Identify, for a given transaction, whether it is excluded from IAS 32 in favour of another standard.
- Justify the exclusion of a share-based transaction and the link to IFRS 2, and place treasury shares held for an option plan.
- Analyse whether a contract to buy a non-financial item falls within IAS 32 depending on whether it can be settled net or is held for the entity's expected needs.