IASB Proposes Changes to the Accounting for Government Loans for First-Time Adopters of IFRSs
Published on:
21 Oct 2011
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Yesterday, the IASB published for public comment ED/2011/5, Government Loans, which proposes amendments to IFRS 1, First-time Adoption of International Financial Reporting Standards. Under the proposal, a first-time adopter would account for a government loan with a below-market interest rate the same way that entities do now under IFRSs. That is, a first-time adopter would prospectively account for the government loan as a government grant in accordance with paragraph 10A of IAS 20, Accounting for Government Grants and Disclosure of Government Assistance (instead of retrospectively, as currently required by IFRS 1).
Comments on the proposal are due by January 5, 2012.
