Guidance on setting Financial Liabilities with Equity Instruments.

• Position: News & trends

The International Financial Reporting Interpretations Committee published for public comment a draft interpretation, Extinguishing Financial Liabilities with Equity Instruments, which proposes:

* An entity's equity instruments are part of any "consideration paid" to extinguish the financial liability;

* Equity instruments are measured at either their fair value or the fair value of the financial liability extinguished, whichever is more reliably determinable; and

* Any difference between the carrying...