SOCPA Shares Perspective on Financial Instruments with Equity Characteristics

The International Accounting Standards Board (IASB) has released an exposure draft to amend IAS 32 regarding financial instruments with equity characteristics. After consulting with relevant stakeholders, the Saudi Organization for Chartered and Professional Accountants (SOCPA), represented by the Accounting Standards Committee, has shared its perspective on the discussed issues in the project. SOCPA expressed its agreement with the project’s direction, focusing on the contractual rights and obligations enforced by applicable laws when classifying financial instruments. SOCPA emphasized the importance of examining several Islamic finance products as financial instruments with equity characteristics and assessing the adequacy of the standard’s requirements for their application, consistent with its previous comments to the IASB on a related project.  SOCPA also highlighted the considerations necessary for applying the proposed requirements in detail in its comments on the project.

To view SOCPA’s full perspective, click here.