BC22 The Standard requires the separate presentation in an entity's balance sheet [IAS 1 (as revised in 2007) replaced the term 'balance sheet' with 'statement of financial position'. When it issued IFRS 18, the IASB carried over these requirements in IAS 1 to IFRS 18.] of liability and equity components of a single financial instrument. It is more a matter of form than a matter of substance that both liabilities and equity interests are created by a single financial instrument rather than two or more separate instruments. The Board believes that an entity's financial position is more faithfully represented by separate presentation of liability and equity components contained in a single instrument.
Allocation of the initial carrying amount to the liability and equity components (paragraphs 31, 32 and AG36-AG38 and Illustrative Examples 9-12)
BC23 The previous version of IAS 32 did not prescribe a particular method for assigning the initial carrying amount of a compound financial inst
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