IFRS requires that any public company repurchasing its own shares with the intent of reissuing these to the public treat these shares as treasury shares.

Question

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Under IFRS, shares repurchased by a company (buybacks) are not classified as treasury shares but are instead required to be cancelled, reducing the number of shares outstanding. Unlike US GAAP, which allows for treasury shares, IFRS does not permit shares to be held in treasury for future reissue.

IFRS Requires That Any Public Company Repurchasing Its Own Shares