The Board considere comments received relating to the remaining proposals in the September 2008 Exposure Draft Additional Exemptions for First-time Adopters (Proposed Amendments to IFRS 1)

Operations subject to rate regulation

The Board discussed and agreed:

• To extend the scope of the exposure draft proposals to include qualifying items classified as an intangible asset;
• To amend the definition of operations subject to rate regulation included in the proposals to reflect the current thinking of the Board's potential project on rate-regulated activities on which entities should be within the scope of an eventual standard on this topic;
• To remove the requirement for an entity to demonstrate the impracticability of both retrospective restatement and fair value as deemed cost before being permitted to use the proposed exemption;
• To add a sentence to paragraph D23 to clarify that an entity uses the proposed exemption or the borrowing costs exemption, not both.

In addition, the Board agreed not finalise these actions pending deliberations on its potential separate project on rate-regulated activities (this is so that the IFRS 1 exemptions can be aligned with the product, if any, of the Board's activities on rate-regulated activities).

Leases

The Board agreed to extend the exposure draft proposals to allow no reassessment of the determination of whether an arrangement contains a lease when previous GAAP the same as IFRIC 4 was applied prospectively rather than retrospectively. At the same time, the Board agreed to clarify that the determination applies on an arrangement-by-arrangement basis.

The Board agreed to amend paragraph D9 to explain that a determination of whether an arrangement contains a lease under previous GAAP should have been in accordance with requirements that would give the same result as would be achieved in accordance with IAS 17.

Assessments under previous GAAP before the date of transition to IFRS

The Board agreed that no additional changes to the exposure draft regarding assessments under previous GAAP before the date of transition to IFRSs were necessary.