IAS 32Chapter 3Lesson 2
Special cases: puttable instruments, liquidation, the 2009 decision and the FICE project
Step 1 of 4Learning objectives
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An instrument the holder can put back is in principle a liability; IAS 32 provides framed exceptions for puttable instruments and for obligations that arise only on liquidation; the FICE project remains a proposal.
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Learning objectives
- Explain that an instrument puttable by the holder is a liability by principle and that a framed exception exists, subject to cumulative conditions.
- Distinguish the conditions of the puttable instruments exception from those of the liquidation exception, and justify why the condition of no other obligation has no equivalent for liquidation.
- Explain the two-step approach recalled by the Committee in 2009 and the effect of a redemption option on subordination.
- Explain that the FICE project is a proposal under deliberation and that the standard in force remains the reference.