{
  "url": "https://openlegislation.uk/eu-regulation-2005-1073/introduction",
  "json_url": "https://openlegislation.uk/eu-regulation-2005-1073/introduction.json",
  "legislation": "eur/2005/1073",
  "legislation_title": "Commission Regulation (EC) No 1073/2005 of 7 July 2005 amending Regulation (EC) No 1725/2003 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council, as regards IFRIC 2 (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2005-1073",
  "path": "introduction",
  "kind": "introduction",
  "number": null,
  "heading": "Introductory text",
  "text": "Commission Regulation (EC) No 1073/2005\nof 7 July 2005\namending Regulation (EC) No 1725/2003 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council, as regards IFRIC 2\n(Text with EEA relevance)\nTHE COMMISSION OF THE EUROPEAN COMMUNITIES,\nHaving regard to the Treaty establishing the European Community.\nHaving regard to Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards, and in particular Article 3 (1) thereof,\nWhereas:\n(1)\nBy Commission Regulation (EC) No 1725/2003 certain international standards and interpretations that were extant at 14 September 2002 were adopted.\n(2)\nOn 17 December 2003 the International Accounting Standard Board (IASB) published revised International Accounting Standard (IAS) 32 Financial Instruments: Disclosure and Presentation. IAS 32 establishes basic principles for the classification of instruments as liabilities or equity and was adopted by the European Commission by Commission Regulation (EC) No 2237/2004 as of 29 December 2004.\n(3)\nFollowing bilateral discussions with representatives of the cooperative world and due to a request by the Commission, the IASB invited its International Financial Reporting Interpretation Committee (IFRIC), to develop an interpretation to facilitate the application of the revised IAS 32.\n(4)\nIFRIC 2 Members’ Shares in Cooperative Entities and Similar Instruments was published on 25 November 2004. The Interpretation clarifies that the classification of members’ shares as financial liabilities or as equity depends upon the characteristics of such shares, especially the redemption features. The effective date of application of this interpretation is the same as that for IAS 32, as already indicated in Recital 3 of Regulation (EC) No 2237/2004 as of 29 December 2004 adopting IAS 32.\n(5)\nThe consultation with technical experts in the field support that IFRIC Interpretation 2 Members’ Shares in Cooperative Entities and Similar Instruments meet the technical criteria for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002.\n(6)\nRegulation (EC) No 1725/2003 should therefore be amended accordingly.\n(7)\nThis amendment should exceptionally take effect for company’s financial year starting on or after 1 January 2005, i.e. from a point in time before the publication of this regulation. The retrospective application is exceptionally justified as to enable cooperatives the preparation of accounts in accordance with IAS 32, as construed by IFRIC 2, and as the companies concerned could legitimately expect such application already at the point of the adoption of IAS 32.\n(8)\nThe measures provided for in this Regulation are in accordance with the opinion of the Accounting Regulatory Committee.\nHAS ADOPTED THIS REGULATION:",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "OJ L 243, 11.9.2002, p. 1."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "OJ L 261, 13.10.2003, p. 1. Regulation as last amended by Regulation (EC) No 211/2005 (OJ L 41, 11.2.2005, p. 1)."
    },
    {
      "type": "footnote",
      "label": "f3",
      "text": "OJ L 393, 31.12.2004, p. 1."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2005/1073/introduction",
    "retrieved_at": "2026-11-01T14:54:30.077328+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}