Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

18 January 2012

EFRAG: Final comment letter on the ED Government Loans (Proposed Amendments to IFRS 1)


EFRAG published its comment letter to the IASB on the Exposure Draft 'Government Loans (Proposed Amendments to IFRS 1)'.

In May 2008 the IASB amended IAS 20, as part of the Annual Improvement Project, in order to require government loans with a below-market rate of interest to be measured at fair value on initial recognition. The IASB decided that this requirement will have to be applied prospectively to new loans.

In September 2011, the IASB decided to amend IFRS 1 in order to allow first-time adopters of IFRSs the same prospective application of the provision set out in IAS 20.

EFRAG has issued its final comment letter on the ED where it is supportive of what the proposals are trying to achieve. However, EFRAG believes that the Board should provide guidance on the recognition and measurement of all government loans existing at the date of transition, and not just on those that were recognised as liabilities under previous GAAP.

Full paper



© EFRAG - European Financial Reporting Advisory Group


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment