Amendments to IRS 1 Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters (the Amendments) introduce a new exemption in the scope of IFRS 1 First-time Adoption of International Reporting Standards. Entities that had been subject to severe hyperinflation are allowed to use fair value as the deemed cost of their assets and liabilities in their opening IFRS statement of financial position. In addition, the Amendments also replace the references to fixed dates in IFRS 1 with references to the date of transition.

EFRAG has issued its Endorsement Advice Letter and Effects Study Report relating to the endorsement of the Amendments for use in the European Union and European Economic Area. EFRAG supports the Amendments and has concluded that they meet the technical requirements of endorsement. EFRAG has also concluded that the benefits of the Amendments outweigh the costs.

The Endorsement Advice Letter can be downloaded below and the Effects Study Report can be found here. 

Linked projects:

IFRS 1 Amendment: Removal of Fixed dates for First-time Adopters