• IAS 32, Financial Instruments: Disclosure and Presentation

History

• Issued January 1999.
• Effective date: Annual financial periods beginning on or after 1 July 1999
• Superseded by and incorporated into IAS 32 (Revised 2003) effective: Annual periods beginning on or after 1 January 2005.

SIC 16 clarifies the accounting for an enterprise's own equity instruments which have been reacquired by the enterprise or any of its subsidiaries. Such reacquired equity instruments are frequently referred to as treasury shares.

SIC 16 states that treasury shares should be presented in the balance sheet as a deduction from equity, and the acquisition of treasury shares should be presented in the financial statements as a change in equity. Treasury shares may not be reported as an asset. Additionally, no gain or loss should be recognised in the income statement on the sale, issuance, or cancellation of treasury shares, and consideration received should be presented in the financial statements as a change in equity.