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Description :
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The IASB proposes to add an exemption to IFRS 1 to allow an entity, which has been subject to hyperinflation, to measure assets and liabilities at fair value and use that fair value as the deemed cost of those assets and liabilities in the opening IFRS statement of financial position (when the date of transition is on, or after, the date when the functional currency of the reporting entity ceases to be subject to severe hyperinflation).
On 3 December 2010, EFRAG issued its final comment letter supporting the amendment, but with some concerns on the scope and application of the proposals. These concerns were majorly included by the IASB when the final amendment was issued in December 2010.
EFRAG initiated the endorsement process, but this process was paralised due to some references to IFRS 9 in the text (the amendment was issued in the same document that the amendment introduced by the ED Removal of fixed dates).
In December 2011, EFRAG issued an Invitation to Comment on its draft endorsement advice and a draft Effect Study Report in respect of the Amendments. Based on the comments received, EFRAG agreed in January 2012 to issue to the European Commission both the positive endorsement advice and the Effect Study Report.
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