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Thursday 23 October 2014

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Amendments to IFRS 1

Meeting Summaries and Observer Notes


 IASB September 2011


 

 

The Board received a request to amend IFRS 1 to allow first-time adopters of IFRSs the same prospective application provisions in certain IFRSs as have been made available to existing preparers of IFRS financial statements. The request noted that while some of the recent Annual Improvements to IFRSs required or permitted prospective application for existing IFRS preparers, no corresponding amendments were made to IFRS 1 for the benefit of first-time adopters. The staff had identified one particular amendment to IAS 20 Accounting for government grants and disclosure of government assistance that they thought required amendment to IFRS 1.

The staff recommended that an amendment should be made to IFRS 1 to allow first time adopters to apply paragraph 10A of IAS 20 prospectively, as was permitted for existing IFRS preparers. The staff requested that the Board should make the amendment separately, rather than including it in the annual improvements project, in order to progress the issue quickly enough to permit entities adopting IFRS in 2011 to take advantage of the amendment. The proposed amendment would be in the form of an optional exemption, such that other entities that have already transitioned to IFRSs in 2011 and produced quarterly reports would not be required to amend their annual financial statements.

The Board tentatively agreed with the staff recommendation to make this amendment to IFRS 1. All Board members present voted in favour of this decision.

Date: 9/22/2011