IAS 32 Presentation

IAS 32 Presentation specifies presentation for financial instruments. The recognition and measurement and the disclosure of financial instruments are the subjects of IFRS 9 Financial Instruments or IAS 39 Recognition & Measurement* and IFRS 7 Disclosures respectively.

For presentation, financial instruments are classified into financial assets, financial liabilities and equity instruments. Differentiation between a financial liability and equity depends on whether an entity has an obligation to deliver cash (or some other financial asset).

However, exceptions apply. When a transaction will be settled in the issuer’s own shares, classification depends on whether the number of shares to be issued is fixed or variable.

A compound financial instrument, such as a convertible bond, is split into equity and liability components. When the instrument is issued, the equity component is measured as the difference between the fair value of the compound instrument and the fair value of the liability component.

Financial assets and financial liabilities are offset only when the entity has a legally enforceable right to set off the recognized amounts, and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.

IAS 32 Presentation is Copyright: IFRS Foundation Earnings per Share


IFRSInternational Financial Reporting Standards0IFRS
IAS32IAS 32 Presentation1IAS32


EPSEarnings per ShareEPS
IAS39IAS 39 Recognition & Measurement*IAS39
IFRS07IFRS 7 DisclosuresIFRS07
IFRS09IFRS 9 Financial InstrumentsIFRS09
IAS 32 Presentation International Financial Reporting Standards 10032 1 IAS, IFRS, Standard, Financial, Accounting, Presentation, Assets, Liabilities, Equity, Instruments IAS 32 specifies presentation for financial instruments