IAS 39 (and IFRS 9) is contradictory with respect to the treatment for term-extending options and pre-payable instruments that may be economically equivalent, and as a consequence, there is diversity in practice in accounting for term-extending options.
In its March 2012 meeting, the Interpretations Committee, however, decided not to address this issue at this stage because the IASB will redeliberate the requirement for bifurcation of financial instruments under the project of classification and measurement of financial instruments.
The Interpretations Committee decided that if the IASB does not address this issue as part of its redeliberations, the Interpretations Committee will revisit the issue.