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Wednesday 27 August 2014

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Amendments to IFRS 1

Meeting Summaries and Observer Notes


 IASB January 2012


 

 

The IASB deliberated on the comments received on the exposure draft Government Loans (Proposed amendments to IFRS 1) published in October 2011. This exposure draft proposed to add an exception to the retrospective application of IFRSs to require first-time adopters of IFRSs to apply the requirements in paragraph 10A of IAS 20 prospectively unless the information needed to apply these requirements retrospectively to a government loan as a result of a past transaction was obtained at the time of initially accounting for that loan.

In order to respond to concerns raised from comment letters and to make the Board's intention clear, the Board agreed to limit the scope of the proposed exemption to matters of recognition and measurement, ie a first-time adopter of IFRSs will be required to apply IAS 32 Financial Instruments: Presentation to classify the loan as debt or equity. The Board asked the staff to modify the proposed illustrative example to illustrate this point.

The Board also agreed that the amendment should have an effective date of 1 January 2013, with early application permitted.

The Board expect to issue the amendment in February 2012.

Date: 1/27/2012