IAS 32 aims to establish principles for the presentation of financial instruments as liabilities or equity. This standard is concerned with classifying financial instruments from the issuer’s perspective into financial assets, financial liabilities, and equity instruments. It also covers the classification of associated interest, dividends, losses, and gains. Furthermore, IAS 32 outlines specific situations in which financial assets and liabilities should be offset.
IAS 32 does not address the recognition and measurement of financial assets and liabilities, as these aspects are covered in IFRS 9. Additionally, the disclosure requirements related to financial instruments are outlined in IFRS 7.
IAS 32 is applicable to all entities and all financial instruments, with some exceptions detailed in IAS 32.4.
See other pages relating to financial instruments:
Scope of IAS 32
Financial Instruments: Definitions
Derivatives and Embedded Derivatives: Definitions and Characteristics
Classification of Financial Assets and Financial Liabilities
Measurement of Financial Instruments
Amortised Cost and Effective Interest Rate
Impairment of Financial Assets
Derecognition of Financial Assets
Derecognition of Financial Liabilities
Factoring
Interest-Free Loans or Loans at Below-Market Interest Rate
Offsetting of Financial Instruments
Hedge Accounting
Financial Liabilities vs Equity
IFRS 7 Financial Instruments: Disclosures