IASB amends IFRS 1 on first-time adoption

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24 Jul 2009

The IASB has amended IFRS 1 'First-time Adoption of International Financial Reporting Standards'.

The amendments address the retrospective application of IFRSs in two particular first-time adoption situations:
  • Full-cost oil and gas assets. The amendments exempt entities using the full cost method from retrospective application of IFRSs for oil and gas assets. Entities electing this exemption will use the carrying amount under its old GAAP as the deemed cost of its oil and gas assets at the date of first-time adoption of IFRSs.
  • Determining whether an arrangement contains a lease. If a first-time adopter with a leasing contract made the same type of determination of whether an arrangement contained a lease in accordance with previous GAAP as that required by IFRIC 4 Determining whether an Arrangement Contains a Lease, but at a date other than that required by IFRIC 4, the amendments exempt the entity from having to apply IFRIC 4 when it adopts IFRSs.
The amendments are effective for annual periods beginning 1 January 2010, with earlier application allowed. Click for IASB Press Release (PDF 104k).

Click for IFRS 1 summary page.

Correction list for hyphenation

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