UITF Abstract 39 (IFRIC 2) Members’ Shares in Co-operative Entities

UITF Abstract 39 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015. For more information visit:

• icaew.com/newukgaap

Synopsis

Abstract 39 is the equivalent of IFRIC Interpretation 2. It provides guidance in applying the requirements of FRS 25 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 UITF Abstract 39 (PDF 59KB/7 pages) 

Last updated 21 June 2015