n The International Accounting Standards Board (IASB) published a discussion paper on the distinction between equity financial instruments and other financial instruments (non-equity instruments). The discussion paper is the first stage of the IASB’s project to improve and simplify the requirements in International Accounting Standard no. 32 (IAS 32), Financial Instruments: Presentation.
The project is a modified joint project between the IASB and FASB. In a modified joint project, one board leads the initial stage. In this case, FASB led the research stage and published a preliminary views document, Financial Instruments with Characteristics of Equity, in November 2007. The IASB’s current discussion paper will solicit the views of interested parties on whether the proposals in the FASB preliminary views document are a suitable starting point for the IASB’s deliberations. If the project is added to the IASB’s active agenda, the IASB intends to undertake it jointly with FASB. Comments are due by Sept. 5. For more information, visit www.iasb.org or www.fasb.org/draft/pv_liab_and_equity.pdf.