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Amendments to IFRS 1

Meeting Summaries and Observer Notes


 IASB November 2009


 

 

The Board was advised that the transition provisions within the Improving Disclosures about Financial Instruments (Amendments to IFRS 7 Financial Instruments: Disclosures) issued in March 2009 provide relief in the first year of application from providing comparative information for the disclosures required by the amendment. The Board noted that a first-time adopter applying the provisions of IFRS 1 First-time adoption of International Reporting Financial Standards would not currently receive the same relief from providing comparative information.

The Board reiterated its basis for conclusions on the Amendments to IFRS 7 that, although the effective date of IFRSs and amendments to IFRSs is usually 6-18 months after issue, the urgent need for enhanced disclosures about financial instruments demanded earlier application. Given the timing of issue of the amendment and the likely use of hindsight required for the disclosures, the Board permitted the first year of application of the amendment to exclude comparative period disclosures required by the Amendment to IFRS 7.

The Board acknowledged that the same justifications from full retrospective application should apply equally to current IFRS preparers and first-time adopters. Consequently, the Board decided to propose an amendment to Appendix E to IFRS 1. The proposed amendment provides relief from the requirement to provide comparative period disclosures required by IFRS 7 to the extent the first IFRS reporting period starts earlier than 1 January 2010.

The Board decided to publish an exposure draft of this proposal in November with a 30-day comment period. The Board expects to finalise the amendment at its January 2010 meeting.

Date: 11/19/2009