IASB Rejects Interpretation Treating Fund Shares as Liabilities

Washington, DC, January 3, 2002 - 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. 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. In response to public comments, 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.