IFRS 7 Best accounting for Treasury shares

IFRS 7 Best accounting for Treasury shares – Treasury shares are previously outstanding shares bought back from shareholders by the issuing company.

IFRS does not mandate a specific method of presenting treasury shares within equity. However, local laws may prescribe the allocation method. Therefore, an entity needs to take into account its legal environment when choosing how to present its own shares within equity.

Presentation format explanations

An entity needs to choose a presentation format, to be applied consistently to all treasury shares. Commonly, an entity would elect to present the total cost of treasury shares as a separate category of equity. [IAS 32 33] IFRS 7 Best accounting for Treasury shares

i. Ordinary shares IFRS 7 Best Read more