FRSC Adopts Amendments on Additional Exemptions for First-time Adopters of PFRS (05-10)
May 2010
The Financial Reporting Standards Council (FRSC) approved in its meeting in March 2010 the adoption of Amendments to IFRS 1: Additional Exemptions for First-time Adopters, issued by the International Accounting Standards Board (IASB), as Amendments to PFRS 1.
These amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, address the retrospective application of IFRSs to particular situations and are aimed at ensuring that entities applying IFRSs will not face undue cost or effort in the transition process.
The amendments:
- exempt entities using the full cost method from retrospective application of IFRSs for oil and gas assets.
- exempt entities with existing leasing contracts from reassessing the classification of those contracts in accordance with IFRIC 4 Determining whether an Arrangement contains a Lease when the application of their national accounting requirements produced the same result.
The amendments are effective for annual periods beginning on or after January 1, 2010, with earlier application permitted.
The FRSC has submitted the Amendments to PFRS 1 to the Board of Accountancy for approval.