Beyond the GAAP no.185 - February 2024

Last November, we reported the publication of an IASB exposure draft of proposed amendments to IAS 32, IFRS 7 and IFRS 1 on the classification of financial instruments with characteristics of equity (“FICE”). In this issue, we present the IASB's proposals on three of the topics covered by these amendments: how to account for rights and obligations arising from legal or regulatory requirements, instruments that are settled in the entity's own equity instruments, and obligations requiring the entity to purchase its own equity instruments (including puts on non-controlling interests). These proposals are sure to prompt reactions from stakeholders.

Turning to sustainability reporting, a growing number of initiatives have been launched to help entities meet the new requirements, including the publication by EFRAG of an initial series of answers to questions posed by stakeholders concerning the application of ESRS. The IFRS Foundation has just published a methodological guide on the use of Sustainability Accounting Standards Board (SASB) standards to meet the requirements of IFRS S1.