Transactions excluded from IAS 32

Learning objectives

• Identify, for a given transaction, whether it is excluded from IAS 32 in favour of another Standard.L2
• Justify the exclusion of a share-based payment transaction and the reference to IFRS 2.L2

Normative references

• IAS 32 §4The scope covers all financial instruments except, in particular: interests in subsidiaries, associates and joint ventures accounted for under IFRS 10, IAS 27 or IAS 28 (the Standard nevertheless applies when those Standards require or permit the use of IFRS 9, and always to derivatives linked to those interests); employers' rights and obligations under employee benefit plans (IAS 19); insurance contracts within the scope of IFRS 17, subject to the cases listed; and financial instruments, contracts and obligations under share-based payment transactions (IFRS 2), except for contracts within paras 8 to 10 and the application of paras 33 and 34 to treasury shares related to those plans. The former exclusion of contingent consideration in a business combination (4(c)) has been deleted.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

3 questions

• Orme SA has set up a share option plan for its employees. To cover the plan, it buys back 20,000 of its own shares on the market (case facts). What treatment applies to this repurchase of treasury shares?L2
• Which items are among those that the standard excludes in principle from its scope, subject to the exceptions it provides? Several answers are possible.L2
• Brise SA buys fabric from a supplier and will pay for it in cash, for an amount linked to Brise's share price at the settlement date (case facts). Which standard relates to this transaction, with regard to the scope of IAS 32?L2