IFRS News, 2018/3

We begin this third edition of 2018 with the IASB’s major new Discussion Paper ‘Financial Instruments with Characteristics of Equity’. This contains proposals that would alter the process for classifying financial instruments issued by an entity as either financial liabilities or equity. We then move on to consider the likely outcome of Argentina being declared hyperinflationary in the second half of 2018, and the effects this would have. The accounting implications of such a large economy being considered hyperinflationary for IFRS purposes are likely to be felt well beyond Argentina itself, and we encourage clients with operations there to start preparing for the change now