International Financial Reporting Standards (IFRS)

IFRS for Small and Medium-sized Entities (SMEs)
Section 22: Liabilities and Equity

1. Equity represents
--> the residual interest in net assets

2. Liability
--> present obligation from past events
--> expected future outflow of resources

3. Puttable instruments that meet the conditions of SME 22.4(a)
--> are classified as equity instrument

4. Compound financial instruments have both (A) and (B)
--> (A) liability component
--> (B) equity component

5. Amount of equity component
= proceeds from compound FI - fair value of liability component

6. Treasury shares
--> Own equity instruments reacquired by the entity

7. Cost of treasury costs
--> is deducted from equity

8. Non-controlling interest (NCI) is
--> included in equity
--> in consolidated financial statements