This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

EU formally adopts amendments to IFRS 1

Mar 05, 2013

The European Union has published a Commission Regulation endorsing the amendments to IFRS 1 regarding government loans published by the IASB on 13 March 2012.

The European Union has published the Commission Regulation (EC) No 183/2013 of 4 March 2013 amending Regulation (EC) No 1226/2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council in the Official Journal on 5 Mach 2013. This means that the amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards published by the IASB on 13 March 2012 have now been incorporated into European law.

This amendment addresses how a first-time adopter would account for a government loan with a below-market rate of interest when transitioning to IFRSs. It also adds an exception to the retrospective application of IFRS, which provides the same relief to first-time adopters granted to existing preparers of IFRS financial statements when the requirement was incorporated into IAS 20 in 2008.

The amendments to IFRS 1 must be applied, at latest, to annual periods beginning on or after 1 January 2013.