
Article 1 
In the Annex to Regulation (EC) No 1126/2008, International Accounting Standard (IAS) 32 Financial instruments: presentation is amended as set out in the Annex to this Regulation.
Article 2 
Each company shall apply the amendment to IAS 32, as set out in the Annex to this Regulation, at the latest, as from the commencement date of its first financial year starting after 31 January 2010.
Article 3 
This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 23 December 2009.
For the Commission
The President
José Manuel BARROSO
ANNEX

IAS 32 Amendment to IAS 32 Financial Instruments: Presentation
‘Reproduction allowed within the European Economic Area. All existing rights reserved outside the EEA, with the exception of the right to reproduce for the purposes of personal use or other fair dealing. Further information can be obtained from the IASB at www.iasb.org’ Amendment to IAS 32 Paragraphs 11 and 16 are amended. Paragraph 97E is added. 11 
…

A financial liability is any liability that is:


((a)) …
((b)) a contract that will or may be settled in the entity’s own equity instruments and is:

((i)) a non-derivative for which the entity is or may be obliged to deliver a variable number of the entity’s own equity instruments; or
((ii)) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose, rights, options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency are equity instruments if the entity offers the rights, options or warrants pro rata to all of its existing owners of the same class of its own non-derivative equity instruments. Also for these purposes the entity’s own equity instruments …
 16 

((a)) …
((b)) If the instrument will or may be settled in the issuer’s own equity instruments, it is:

((i)) a non-derivative that includes no contractual obligation for the issuer to deliver a variable number of its own equity instruments; or
((ii)) a derivative that will be settled only by the issuer exchanging a fixed amount of cash or another financial asset for a fixed number of its own equity instruments. For this purpose, rights, options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency are equity instruments if the entity offers the rights, options or warrants pro rata to all of its existing owners of the same class of its own non-derivative equity instruments. Also, for these purposes the issuer’s own equity instruments do not include instruments that have all the features and meet the conditions described in paragraphs 16A and 16B or paragraphs 16C and 16D, or instruments that are contracts for the future receipt or delivery of the issuer’s own equity instruments.

A contractual obligation …
 97E Paragraphs 11 and 16 were amended by Classification of Rights Issues issued in October 2009. An entity shall apply that amendment for annual periods beginning on or after 1 February 2010. Earlier application is permitted. If an entity applies the amendment for an earlier period, it shall disclose that fact.
