News
IASB Latest News
11-Jan-2011
Monitoring Board provides update on governance review
The Monitoring Board has provided an update following their meeting on 6 December 2010 in Tokyo regarding the review of the governance framework around the Monitoring Board and the IFRS Foundation.
IASB issues narrow amendments to IFRS 1
The International Accounting Standards Board (IASB) today issued two narrow amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards (IFRSs). The amendments confirm proposals that were published as separate exposure drafts for public comment in August and September.
The first amendment replaces references to a fixed date of ‘1 January 2004’ with ‘the date of transition to IFRSs’, thus eliminating the need for companies adopting IFRSs for the first time to restate derecognition transactions that occurred before the date of transition to IFRSs. The second amendment provides guidance on how an entity should resume presenting financial statements in accordance with IFRSs after a period when the entity was unable to comply with IFRSs because its functional currency was subject to severe hyperinflation.
The amendments to IFRS 1 are set out in Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters and are effective from 1 July 2011. Earlier application is permitted. Further details are available from the IASB website at www.ifrs.org.
IASB issues amendments to IAS 12 Income Taxes
The International Accounting Standards Board (IASB) has today issued amendments to IAS 12 Income Taxes. The amendments, set out in Deferred Tax: Recovery of Underlying Assets, result from proposals published for public comment in an exposure draft in September.
IAS 12 requires an entity to measure the deferred tax relating to an asset depending on whether the entity expects to recover the carrying amount of the asset through use or sale. It can be difficult and subjective to assess whether recovery will be through use or through sale when the asset is measured using the fair value model in IAS 40 Investment Property. The amendment provides a practical solution to the problem by introducing a presumption that recovery of the carrying amount will, normally be , be through sale.
As a result of the amendments, SIC-21 Income Taxes—Recovery of Revalued Non-Depreciable Assets would no longer apply to investment properties carried at fair value. The amendments also incorporate into IAS 12 the remaining guidance previously contained in SIC-21, which is accordingly withdrawn.