According to the law of corporates in Chile, my country, every time a corporate carries out a capital increase via the issuance of new shares, it must first offer them to its shareholders in proportion to the number of shares they own, giving them rights issues (of course, without consideration), called OSAs. Such rights are tradable, i.e. existing shareholders can sell their rights to the new shares to another party during the offer period.
According to definition of financial liability (b)(ii) of IAS 32, para 11, I understand these rights classify as equity. In this sense, my question is, should such rights be recognized in the equity of the corporation?
My understanding of the standard tells me no, because a measurement at fair value, since there is no consideration, would not be appropriate as it is a transaction with the owners (shareholders) acting as such, which would prevent the recognition of effects on profits or losses. Therefore, it would simply wait for the issuance of the shares to recognize the corresponding credit in equity for the increase in share capital against a charge to the cash received. I would like to know your points of view. What do you think? Please
