UITF Abstract 11 Capital Instruments: Issuer Call Options
Issued September 1994. Effective accounting periods ending on or after 23 October 1994. For companies complying with FRS 26, UITF 11 is now superseded. It remains in force for other companies.
UITF Abstract 11 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015. For more information visit:
Synopsis
The UITF consensus is:
- Where an instrument includes a call option that can only be exercised by the issuer the payment required on exercise of the option does not form part of the finance costs of the instrument;
- In the case of debt the gain or loss arising on any repurchase will reflect the amount payable on exercise;
- In the case of shares the amount payable on exercise will be used to reduce the amount of shareholders’ funds.
Last updated 21 June 2015
