IPSAS 28, Financial Instruments: Presentation, replaces IPSAS 15, Financial Instruments: Disclosure and Presentation, and should be applied for annual reporting periods beginning on or after 1 January 2013.
The objective of IPSAS 28 is to establish principles for presenting financial instruments as liabilities or net assets/equity and for offsetting financial assets and financial liabilities. It applies to the classification of financial instruments, from the perspective of the issuer, into financial assets, financial liabilities and equity instruments; the classification of related interest, dividends or similar distributions, losses and gains; and the circumstances in which financial assets and financial liabilities should be offset. Together with IPSAS 29 and IPSAS 30, IPSAS 28 covers all aspects of the accounting for and disclosure of financial instruments. The disclosure requirements relating to financial instruments are included in IPSAS 30.
IPSAS 28 is based on IAS 32, Financial Instruments: Presentation. (amended as at 31 December 2008). Because there is a strong link between IAS 32 and IFRIC 2, Members' Shares in Co-operative Entities and Similar Instruments, in relation to puttable financial instruments and obligations arising on liquidation the principles and examples from IFRIC 2 have been included in IPSAS 28 as an authoritative appendix.