IFRS 1 – Replacement of 'fixed dates'
IFRS 1 First-time Adoption of International Financial Reporting Standards requires a first-time adopter to restate past derecognition transactions that occurred after 1 January 2004. This requirement was included in IFRS 1 as a result of the revision to IAS 39 Financial Instruments: Recognition and Measurement in 2003, to place entities then adopting IFRSs for the first
time in the same position as existing IFRS users at that time.
As time passes, the fixed transition date of 1 January 2004 becomes more remote and increasingly less relevant to the financial reports of additional jurisdictions that will adopt IFRSs.
Accordingly, this project was initiated to consider an amendment to IFRS 1 by replacing references to a fixed transition date of ‘1 January 2004’ with ‘the date of transition to IFRSs’.
As a result, entities adopting IFRSs for the first time would not have to restate derecognition transactions that occurred before the date of transition to IFRSs. In addition, first-time adopters would also not have to recalculate ‘day 1’ differences on initial recognition of financial instruments, where the transaction occurred before the date of transition to IFRSs.
Current status of the project
This project has been completed. The IASB issued Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters on 20 December 2010.
|July 2010||Added to the IASB's agenda||Recommendation made by the IFRS Interpretations Committee|
|26 August 2010||Exposure Draft ED/2010/10 Removal of Fixed Dates for First-time Adopters published||Comment deadline 27 October 2010|
|20 December 2010||Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters issued
||Effective for annual periods beginning on or after 1 July 2011|