The Financial Reporting Standards Council (FRSC) has issued an Invitation to Comment on IASB’s Exposure Draft (ED) of revised proposed amendments to IFRS 1, First-time Adoption of International Financial Reporting Standards, and IAS 27, Consolidated and Separate Financial Statements.

The exposure draft – Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate – was developed in response to comments received on a related exposure draft, published by the IASB in January 2007 (issued for comment by the FRSC in February 2007). In the light of those comments and further consultation with interested parties, the IASB reconsidered its proposals and, in accordance with its due process, now invites comment on the revised proposals.

The proposals address concern that retrospectively determining cost in accordance with IAS 27 on first-time adoption of International Financial Reporting Standards (IFRSs) cannot, in some circumstances, be achieved without undue cost or effort. Consequently, this might create a barrier to entities’ adoption of IFRSs in separate financial statements. Additionally, the proposals respond to inquiries received about the measurement of cost in the separate financial statements
of a new parent entity.

The FRSC Invitation to Comment and the IASB ED may be downloaded from the Philippine Financial Reporting Standards (PFRS) website, within the PICPA website (www.picpa.com.ph). The IASB ED may also be downloaded from the IASB website (www.iasb.org).

The FRSC invites comments on the IASB ED by February 13, 2008 to enable the Council to consider and include comments from Philippine respondents in its response to the IASB.