IFRIC 2 Members’ Shares in Co-operative Entities and Similar Instruments

Synopsis

IFRIC 2 provides guidance in applying the requirements of IAS 32 in terms of classifying financial instruments as liabilities or equity to co-operatives and similar entities.

Shares for which the member has the right to request redemption are normally liabilities, unless:

• The entity has an unconditional right to refuse redemption
• Local law, regulation or the entity’s governing charter can unconditionally prohibit redemption.

• Read the unaccompanied version of IFRIC 2

The International Accounting Standards Board (IASB) provides free access to the consolidated unaccompanied international accounting standards for the current year through its website. Free registration is required.

Which version of the interpretation?

'Which version of the interpretation?' is only available to members of the Financial Reporting Faculty. Please note that to access electronic versions of IFRS through the links in these standard trackers you need to have first logged into IFRS Standards Navigator.

IFRSs referred to by IFRIC 2

• IFRS 9 Financial Instruments
• IFRS 13 Fair Value Management
• IAS 32 Financial Instruments: Presentation

This page was last updated 4 February 2022.