ED 1's title was First-Time Application of IFRS. Under ED 1, a first-time adopter would comply with the latest version of each IFRS, with limited exemptions. ED 1 had proposed that some of the exemptions would require the first-time adopter to conclude that compliance with certain IFRSs would involve undue cost or effort. At its March 2003 meeting, the Board agreed that none of the exemptions would require a first-time adopter to demonstrate undue cost or effort. Our notes from the IASB's March 2003 meeting had said that, in the final IFRS, all choices will be free choices. That would not include hedge accounting, derecognition, and estimates. For clarification, we have amended our Project Update
and Meeting Summary
. The IASB expects to issue a final IFRS in the second quarter of 2003, effective for a company's first IFRS financial statements for a period beginning on or after 1 January 2004. Earlier application would be encouraged.