Determining cost of an investment in separate financial statements
22 May 2008
The IASB has amended two standards to change the way the cost of an investment in the separate financial statements is measured on first-time adoption of IFRSs.
The amended standards are IFRS 1 First-time Adoption of IFRSs and IAS 27 Consolidated and Separate Financial Statements. The Board made the amendments because retrospectively determining cost and applying the cost method in accordance with IAS 27 on first-time adoption of IFRSs cannot, in some circumstances, be achieved without undue cost or effort.
The amendments to IFRS 1 and IAS 27:
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The amendments to IFRS 1 and IAS 27 are effective for annual periods beginning on or after 1 January 2009, with earlier application permitted.
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