IFRS in Focus — IASB issues exposure draft on prospective application of IAS 20 to government loans at below-market rates of interest for first-time adopters of IFRSs
Published on:
20 Oct 2011
![IFRS in Focus — IASB issues exposure draft on prospective application of IAS 20 to government loans at below-market rates of interest for first-time adopters of IFRSs Image]()
This newsletter discusses Exposure Draft ED/2011/5 Government Loans (Proposed amendments to IFRS 1) issued by the IASB for public comment on 20 October 2011.
The proposed amendment addresses how a first-time adopter would account for a government loan with a below-market rate of interest when transitioning to IFRSs. In addition, the proposed amendment adds an exception to the retrospective application of IFRS, which would then provide the same relief to first-time adopters granted to existing preparers of IFRS financial statements when the requirement was incorporated into IAS 20 Accounting for Government Grants and Disclosure of Government Assistance in 2008.
