Comment letter to the IASB DP Financial Instruments with Characteristics of Equity Conseil national

Conseil National de la Comptabilitéth3, Boulevard Diderot PARIS, 5 September 200875572 PARIS CEDEX 12Téléphone 01 53 44 52 01Télécopie 01 53 18 99 43/01 53 44 52 33Internet http://www.cnc.minefi.gouv.frMr. Stig EnevoldsenMel jean-francois.lepetit@cnc.finances.gouv.fr EFRAG13-14 Avenue des ArtsLe PrésidentJFL/MPC 1210 BRUSSELSn°456 BelgiumRe : EFRAG Draft Comment Letter to the IASB Discussion Paper Financial Instruments withCharacteristics of EquityDear Stig,Please find enclosed for your information the CNC Comment Letter on the Discussion PaperFinancial Instruments with Characteristics of Equity. The CNC supports the EFRAG comments. The CNC considers that the three approaches proposed by the FASB do not provide anyparticular improvements relative to the provisions of the currently applicable IAS 32. TheCNC then advocates in favour of an improvement of the current IAS 32 which should focuson some fundamental issues like the introduction of the concept of an issuer’s economicrepayment obligation (or “economic compulsion”) in order to qualify an issued instrument asa debt instrument, as replacement for the strictly contractual obligation currently applicableunder IAS 32. Furthermore, the IASB Discussion Paper does not present any analysis regarding theattributes of equity instruments unlike the document issued by the PAAinE which providesinteresting basis for conclusions about the main characteristics of equity and debt instruments.I hope you ...