IASB proposes amendments to first-time adoption
Sep 25, 2008
The IASB has issued an exposure draft of proposed amendments to IFRS 1 'First-time Adoption of International Financial Reporting Standards'.
The amendments would provide two additional exemptions from retrospective restatement for first-time adopters of IFRSs. The proposals are aimed at ensuring that entities applying IFRSs will not face undue cost or effort in the transition process. The exposure draft proposes:
- to exempt companies from retrospective application of IFRSs for oil and gas assets using the full cost method and for operations subject to rate regulation
- to exempt companies with existing leasing contracts accounted for in accordance with IFRIC 4 Determining whether an Arrangement contains a Lease from reassessing the classification of those contracts according to IFRSs when the same classification has previously been made in accordance with national GAAP.
