IFRS 1 – Amendment for government loans
Review of a request received by the IFRS Interpretations Committee
The Board discussed recommendations that first-time adopters of IFRSs should be permitted to apply paragraph 10A of IAS 20 Accounting for Government Grants and Disclosure of Government Assistance prospectively. The amendment was requested given that while some of the recent Annual Improvements to IFRSs require or permit prospective application for existing IFRS preparers, no corresponding amendments were made to IFRS 1 for the benefit of first-time adopters.
With no substantive debate, the Board tentatively agreed with the Committee's proposal to recommend that first-time adopters should be permitted to apply paragraph 10A of IAS 20 prospectively, which will be set out through a separate exposure draft as opposed to applying in the next Improvements to IFRSs exposure draft given the nature of the amendment.