IAS 32 — Financial Instruments: Presentation
Modules of the standard
- Concepts34 publishedNormative and pedagogical mapping.
- Questions68 publishedTrue/false, quizzes, calculations, entries, mini-cases, judgment.
- Practical cases5 publishedProgressive cases, from beginner to expert.
- Workpapers3 publishedWorking papers with calculations and entries.
- Professional file1 publishedSimulation of a full engagement.
- Exams2 publishedSealed, versioned final exams.
- Explanations (lessons)12 publishedLesson explanations, chapter by chapter.
Practical cases
- Instruments issued: definition of a financial instrument, contractual obligation and right to avoid deliveryL1Beginner
- Instruments settled in own shares: fixed-for-fixed condition, settlement options, contingent clause and option plan within IFRS 2L2Intermediate
- Convertible bond: split into a liability component and an equity component, interest charge, carrying amount and conversion at maturityL3Advanced
- Treasury shares, dividends and interest, issue costs: treatment depending on the classification of the instrumentsL3Advanced
- Offsetting, puttable instruments, cooperative member shares and the FICE project: a classification and presentation fileL4Expert
- File on issued financial instruments: liability / equity classification, split of a convertible bond, distributions and offsetting (IAS 32)L4Expert
Workpapers
- Classification of an issued instrument: financial liability, equity instrument or compound instrument
- Compound instrument: split into a liability component and an equity component, entries for the issue, interest, coupon and conversion
- Offsetting a financial asset and a financial liability: legally enforceable right, intention to settle and net amount presented
Concepts by topic
Mapping texts (concept labels, objectives, paragraph summaries) are available in French only for now.
Scope and definitions
- The financial instrument: one contract, two positionsCore3 questions
- The financial asset, seen from the holder's sideCore3 questions
- The financial liability, seen from the issuer's sideCore3 questions
- The equity instrument: no obligationCore3 questions
- The contract requirement: written or not, but not a taxImportant2 questions
- Transactions excluded from IAS 32Important2 questions
- Contracts on non-financial items that can be settled netAdvanced1 question
Classification: financial liability or equity
- The contractual obligation to deliver cashCore3 questions
- The unconditional right to avoid deliveryCore3 questions
- Fixed-for-fixed: the own-shares testCore3 questions
- Contingent settlement clausesImportant2 questions
- Settlement optionsImportant2 questions
- Foreign currency price and rights offered pro rataAdvanced1 question
Puttable instruments and special cases
- Instruments puttable by the holder: the exceptionAdvanced1 question
- Obligations that arise only on liquidationAdvanced1 question
- Comparing the two exceptionsAdvanced1 question
- The 2009 Committee decisionSpecialised1 question
- Members' shares in a cooperative (IFRIC 2)Advanced1 question
Compound financial instruments
- Splitting a compound instrument at inceptionCore3 questions
- The liability first, equity as the residualCore3 questions
- No gain or loss on issueCore3 questions
- Conversion at maturityImportant2 questions
- Interest charge and coupons of the liability componentAdvanced1 question
Treasury shares, distributions and transaction costs
- Treasury sharesCore3 questions
- Interest and dividends: classification decidesCore3 questions
- The tax effect of distributions (reference to IAS 12)Advanced1 question
- Equity issue costsImportant2 questions
Offsetting of financial assets and liabilities
- The two offsetting criteriaCore3 questions
- The legally enforceable right of set-offImportant2 questions
- The intention to settle netAdvanced1 question
Links with other standards and proposals
- The link with IFRS 9: classify or measureImportant2 questions
- The link with IAS 33: dilutionAdvanced1 question
- The link with IFRS 2: share-based paymentsAdvanced1 question
- The FICE project: proposalsSpecialised1 question