24-11-2008 | EFRAG issues its draft comment letter on the ED proposing additional exemptions for first-time adopters

EFRAG has issued its draft comment letter on the IASB Exposure Draft of proposed amendments to IFRS 1 ‘Additional Exemptions for First-time Adopters’. Comments are invited on the draft letter by 9 January 2009. The letter can be downloaded here. Comments can be sent by email (commentletters@efrag.org) or via our website.
	IFRS 1 sets out exemptions to the normal requirements of IFRS that can be applied when an entity prepares its first set of financial statements in compliance with IFRS (ie when an entity is a ‘first-time adopter’). Its objective is to ensure that an entity’s first IFRS financial statements contain high quality information that is transparent for users and comparable over all periods presented, provides a suitable starting point for accounting under IFRSs, and can be generated at a cost that does not exceed the benefits for users. IFRS 1 provides some relief from the requirements in IFRS that would otherwise apply in order to ensure that the cost/benefit objective in particular is met. The objective of the proposals in the ED is to address certain concerns that are thought likely to arise for first-time adopters from the jurisdictions that are expected to adopt IFRS over the next few years. The areas where additional exemptions are proposed are: deemed cost for oil and gas assets, and disclosures relating to those assets, changes in existing decommissioning, restoration and similar liabilities included in the cost of property, plant and equipment deemed cost for assets used in operations subject to rate regulation, and determination of whether or not an arrangement involves a lease. EFRAG is generally supportive of the amendments proposed, but has some concerns about the industry-specific nature of the exemptions being proposed.
Document : EFRAGs draft comment letter on IFRS 1 Additional exemptions.pdf
Linked Project : click here