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Amendments to IFRS 1

Meeting Summaries and Observer Notes


 IASB December 2010


 

 

The IASB deliberated the comments received on the exposure draft Severe Hyperinflation (Amendment to IFRS 1) published in September 2010. In order to provide guidance for entities emerging from a period of severe hyperinflation, the Board agreed to add an exemption to IFRS 1 First-time Adoption of International Financial Reporting Standards that allows entities to resume presenting IFRS financial statements or to present IFRS financial statements for the first time, by permitting the entity to measure all assets and liabilities held before the functional currency normalisation date at fair value on the date of transition to IFRSs. The entity taking this exemption would use that fair value as the deemed cost of those assets and liabilities in the opening IFRS statement of financial position.

The Board also agreed that the amendment should have an effective date of 1 July 2011, with early application permitted.

The Board issued the amendment on 20 December 2010.

Date: 12/13/2012