The International Accounting Standards Board (IASB) issued amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards. The amendments address the retrospective application of IFRSs to particular situations and are aimed at ensuring that entities applying IFRSs will not face undue cost or effort in the transition process.
The amendments:
- exempt entities using the full cost method from retrospective application of IFRSs for oil and gas assets.
- exempt entities with existing leasing contracts from reassessing the classification of those contracts in accordance with IFRIC 4 Determining whether an Arrangement contains a Lease when the application of their national accounting requirements produced the same result.
The IASB completed the amendments after considering the responses to an exposure draft published in September 2008. A large majority of respondents supported the proposals. The exposure draft also contained proposals relating to activities subject to rate regulation. The IASB decided that those proposals, revised as a result of comments received, should be included in the exposure draft Rate-regulated Activities.
The document Additional Exemptions for First-time Adopters (amendments to IFRS 1) is available for eIFRS subscribers.