IASB Plans to Amend IFRS 1

The International Accounting Standards Board has published for comment a proposed amendment to IFRS 1, First-Time Adoption of International Financial Reporting Standards.

The proposal sets out how a first-time adopter would account for a government loan with a below-market rate of interest when they transition to IFRSs.

The IASB says that if adopted, this amendment would provide the same relief to first-time adopters as is granted to existing preparers of IFRS financial statements when applying IAS 20, Accounting for Government Grants and Disclosure of Government Assistance.

The exposure draft, Government Loans(Proposed amendments to IFRS1), is open for comment until 5 January 2012 and can be accessed on the Comment on a Proposal section on www.ifrs.org