IAS 32 Financial Instruments: Presentation
International Accounting Standard 32
Overview of IAS 32
- Issued: in 1995; re-issued in 2003, followed by amendments
- Effective date: 1 January 2005
- What it does:
- It establishes principles for presenting financial instruments as liabilities or equity and for offsetting financial assets and financial liabilities.
- Together with standards IFRS 7 and IFRS 9 it creates complex group of mutually complementing rules on financial instruments.
- It defines key terms, such as financial instrument, financial asset, financial liability, equity instrument, fair value, puttable instrument, etc.
- It provides the guidance on accounting for compound financial instruments
Articles about IAS 32
- Summary of IAS 32 Financial Instruments: Presentation
- What Is a Financial Instrument? - this article brings more clarity to the definitions of financial instruments.
- How to Account for Compound Financial Instruments- this article clearly explains how to account for compound financial instruments and contains a video, too.
- How to Account for Cryptocurrencies in line with IFRS - this article clarifies why cryptocurrencies do not meet the definition of a financial instrument and currency as stipulated by IAS 32.
You can find more articles about financial instruments here.
Questions and Answers
- What is the difference between a contract asset and an account receivable?
- Are income tax advances financial instruments?
You can find more Questions and Answers related to to financial instruments here.
Other Resources
- IFRS Kit - learn IFRS in 150+ videos, 150+ excel case studies, quizzes, certificates
- Expected Credit Loss for Accountants - highly specialized course focused on ECL under IFRS 9 with step-by-step example related to trade receivables, many practical insights included.
