IFRS 1 — Government loans


This project seeks to amend the requirements for first-time adoption to mirror the requirements for existing IFRS preparers in relation to the application of amendments made to IAS 20 Accounting for Government Grants and Disclosure of Government Assistance in relation to accounting for government loans.

The amendments to IAS 20 were made in 2008 as part of the annual improvements process, requiring an entity to measure government loans with a below-market rate of interest at fair value on initial recognition. The proposed amendment to IFRS 1 First-time Adoption of International Financial Reporting Standards would require that first-time adopters apply this requirement in IAS 20 prospectively to loans entered into on or after the date of transition to IFRSs. However, if an entity obtained the information necessary to apply the requirements to a government loan as a result of a past transaction at the time of initially accounting for that loan, then it may choose to apply IAS 20 retrospectively to that loan.


Current status of the project

This project has been completed. The IASB issued Government Loans (Amendments to IFRS 1) on 13 March 2012.


Project milestones

September 2011 Added to the IASB's agenda
20 October 2011 Exposure Draft ED/2011/5 Government Loans (Proposed amendments to IFRS 1) published Comment deadline 5 January 2012
13 March 2012 Government Loans (Amendments to IFRS 1) issued Effective for annual periods beginning on or after 1 January 2013. Earlier application is permitted.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.