The Property Council supports the Proposal providing there is further clarification to ensure that dividend distribution requirements do not prevent the financial instruments from being considered equity.
Whilst the Proposal is a pragmatic solution to part of the debt/equity issues in AASB 132, we are concerned that the amendments have a narrow focus which excludes a large number of Australian Property Trusts where AASB 132 is producing results that do not reflect economic reality under the debt/equity distinction.
