IASB proposes amendment to IFRS 1

The International Accounting Standards Board
(IASB) has proposed an amendment to IFRS 1 First-time Adoption
of IFRS.

The amendment explains how a first time
adopter of IFRS would account for a government loan with a
below-market rate of interest when they make the transition to
IFRS.

The IASB said if the amendment is adopted it
will provide the same relief to first-time adopters as is granted
to existing preparers of IFRS financial statements when applying
IAS 20 Accounting for Government Grants and Disclosure of
Government Assistance.

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