The Board was made aware of difficulties in the transition requirements in IAS 39 for first-time adopters using IFRS 1 to apply fully the retrospective approach without the impracticability exception for day one profit previously recognised. The Board also noted this was contradictory to US GAAP which limits the retrospective approach to 25 October 2002. The Board therefore decided to converge with US GAAP to only require retrospective application back to 25 October 2002. Companies would have the choice to retrospectively apply earlier.

The Board will effect this amendment by adding it to the IAS 39 guarantees exposure deraft due out very shortly. There was concern as to the moving of the stable platform; however, the Board noted this change will make first-time adoption easier.

The Board also decided to add guidance to prevent 'day 2' gains from being recognised.