IASB puts forward IFRS 1 changes
The International Accounting Standards Board (IASB) has put forward new proposals relating to organisations adopting IFRS for the first time.
The proposed amendments to First time Adoption of International Financial Reporting Standards would see references to a fixed transition date of 1 January 2004 replaced with ‘the date of transition of IFRSs’. This means that entities adopting the standard for the first time would not have to restate derecognition transactions that occurred before the date of transition to IFRSs.
In addition, first-time adopters would also not have to recalculate ‘day 1’ differences on initial recognition of financial instruments, where the transaction occurred before the date of transition to IFRSs.
The exposure draft, Removal of Fixed Dates for First-time Adopters, is open for comment until 27 October 2010 and can be accessed via the ‘Comment on a Proposal’ section of www.ifrs.org.
The Bottom Line:If Mr Cable has his way...
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