“Proposed Amendments to AASB 132 Financial Instruments: Presentation and AASB 101 Presentation of Financial Statements: Financial Instruments Puttable at Fair Value and Obligations Arising on Liquidation” 
 
The International Accounting Standards Board (IASB) issued an Exposure Draft that argues that certain financial liabilities are more akin to equity and provided that those Financial Instruments meet certain conditions, they need to be accounted for as equity rather than liabilities.  
 
Three types of financial liabilities that the IASB believes are akin to equity are covered:  

• ordinary shares that are 'puttable' to (ie redeemable from) the issuer at fair value;  
  
• ordinary shares of limited life entities; and  
  
• partners' interests in a partnership that must liquidate upon the exit of a partner (eg. on retirement)