Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p42
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
Provision Reference: 
Character Range: 113425–116195

for the goods or services and will return cash in exchange;
(c) a bond that will be settled through delivery of an entity's shares – an entity receives cash and will return its own equity instruments in exchange; and
(d) an obligation for an entity to purchase its own equity instruments – an entity receives its own equity instruments and will return cash in exchange.
B52 Examples of income and expenses from such liabilities that paragraph 60 requires an entity to classify in the financing category include:
(a) interest expenses (for example, on debt instruments issued);
(b) fair value gains and losses (for example, on a liability designated at fair value through profit or loss);
(c) dividends on issued shares classified as liabilities; and
(d) income and expenses from the derecognition of the liability (see paragraph B61).

Liabilities arising from transactions that do not involve only the raising of finance
B53 Paragraph 59(b) requires an entity to identify liabilities that arise from transactions that do not involve only the raising of finance. Such liabilities include:
(a) payables for goods or services that will be settled in cash – an entity receives goods or services, not finance in the form described in paragraph B50(a);
(b) contract liabilities – an entity will return goods and services, not cash or its own equity instruments as described in paragraph B50(b);
(c) lease liabilities – an entity receives a right-of-use asset, not finance in the form described in paragraph B50(a);
(d) defined benefit pension liabilities – an entity receives employee services, not finance in the form described in paragraph B50(a);
(e) decommissioning or asset restoration provisions – an entity receives an asset that is not finance in the form described in paragraph B50(a); and
(f) a litigation provision – an entity does not receive finance as described in paragraph B50(a).
B54 Examples of income and expenses from such liabilities that paragraph 61 requires an entity to classify in the financing category include:
(a) interest expenses on payables arising from the purchase of goods or services, applying AASB 9;
(b) interest expenses on a contract liability with a significant financing component as specified by AASB 15;
(c) interest expenses on a lease liability, applying AASB 16;
(d) net interest expense (income) on a net defined benefit liability (asset), applying AASB 119; and
(e) the increase in the discounted amount of a provision arising from the passage of time and the effect of any change in the discount rate on provisions, applying AASB 137.
B55 Examples of income and expenses that arise from transactions that do not involve only the raising of finance but that are not in the scope of paragraph 61, and accordingly are classified