[14292]
January 3, 2002
TO: ACCOUNTING/TREASURERS COMMITTEE No. 1-02
INTERNATIONAL COMMITTEE No. 1-02
RE: IASB REJECTS INTERPRETATION TREATING FUND SHARES AS LIABILITIES
As previously reported, the Standing Interpretation Committee of the International
Accounting Standards Board proposed and then confirmed an interpretation (“SIC-D34”)
treating redeemable shares issued by investment companies as liabilities for financial
accounting purposes.1 SIC-D34 provides guidance on implementation of IAS 32, Financial
Instruments: Disclosure and Presentation. The Standing Interpretation Committee, much like the
FASB’s Emerging Issues Task Force, provides interpretive guidance on practice issues related to
existing accounting standards.
The International Accounting Standards Board was asked to approve final issuance of
SIC-D34 in December. We are pleased to report that in response to comments by the Institute
and others, the IASB did not approve final issuance of the interpretation. However, the Board
agreed to address the issue as part of its ongoing project to improve IAS 32.
We will keep you informed of further developments.
Gregory M. Smith
Director – Operations/
Compliance & Fund Accounting
1 See Memorandum to Accounting/Treasurers Committee No. 34-01 and International Committee No. 61-01, dated
November 27, 2001.