SIC-16
Historical
Share Capital–Reacquired Own Equity Instruments (Treasury Shares)
Addressed accounting for reacquired own equity instruments (treasury shares), confirming they should be deducted from equity with no gain or loss recognised. Withdrawn in 2003.
Historical Reference
SIC-16 was withdrawn in March 2003 when the IASB issued a revised IAS 32 Financial Instruments: Presentation, which incorporated treasury share treatment directly into the standard at paragraphs 33–34, removing the need for the interpretation.
This page is retained for historical and comparative reference. Entities should refer to the current standard that superseded this interpretation for authoritative guidance.
Current Standard
IAS 32 Financial Instruments: Presentation 1
What SIC-16 Addressed (Historical)
What SIC-16 addressed
SIC-16 addressed accounting for reacquired own equity instruments, commonly known as treasury shares. It clarified how an entity should account for the purchase, sale, issue or cancellation of its own equity instruments and whether any gain or loss should be recognised in profit or loss.
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The Conclusion It Reached (Historical)
The conclusion it reached
SIC-16 concluded that reacquired own equity instruments should be accounted for as a deduction from equity. No gain or loss should be recognised in profit or loss on the purchase, sale, issue or cancellation of treasury shares. Consideration paid or received should be recognised directly in equity, consistent with the treatment of transactions with owners in their capacity as owners.
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Where This Guidance Lives Today
Where this guidance lives today
Superseded byIAS 32 Financial Instruments: Presentation
Why withdrawnThe 2003 revision incorporated treasury share treatment directly into IAS 32.33–34
Current statusWithdrawn
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Glossary
Treasury shares
Own equity instruments that have been reacquired by the issuing entity, deducted from equity, and not recognised as a financial asset.
Own equity instruments
Instruments that represent a residual interest in the issuing entity's assets after deducting liabilities, including ordinary shares, preference shares and stock options.
Financial statement key
BS Balance sheet
IS Income statement
SE Statement of changes in equity
OCI Other comprehensive income
SCF Statement of cash flows
History & Development
Jan-1998
In January 1998 the Standing Interpretations Committee issued SIC-16 Share Capital–Reacquired Own Equity Instruments (Treasury Shares).
Apr-2001
In April 2001 the International Accounting Standards Board adopted SIC-16.
Minor consequential amendment to SIC-16
Mar-2003
In March 2003 the Board issued a revised IAS 32 Financial Instruments: Presentation which superseded SIC-16.
Superseded by revised IAS 32