ANNEX
INTERNATIONAL ACCOUNTING STANDARDS
IFRS 1 | Amendments to IFRS 1 Additional Exemptions for First-time Adopters |
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Amendments to IFRS 1
First-time Adoption of International Financial Reporting Standards
A heading and paragraphs 31A and 39A are added.
PRESENTATION AND DISCLOSURE
Explanation of transition to IFRSs
Use of deemed cost for oil and gas assets
31A | If an entity uses the exemption in paragraph D8A(b) for oil and gas assets, it shall disclose that fact and the basis on which carrying amounts determined under previous GAAP were allocated. |
EFFECTIVE DATE
39A | Additional Exemptions for First-time Adopters (Amendments to IFRS 1), issued in July 2009, added paragraphs 31A, D8A, D9A and D21A and amended paragraph D1(c), (d) and (l). An entity shall apply those amendments for annual periods beginning on or after 1 January 2010. Earlier application is permitted. If an entity applies the amendments for an earlier period it shall disclose that fact. |
EXEMPTIONS FROM OTHER IFRSS
In Appendix D paragraph D1(c), (d) and (l) and a heading are amended. Paragraphs D8A, D9A and D21A are added.
D1 | An entity may elect to use one or more of the following exemptions: ... deemed cost (paragraphs D5–D8A); leases (paragraphs D9 and D9A); ... decommissioning liabilities included in the cost of property, plant and equipment (paragraphs D21 and D21A); ... |
Deemed cost
D8A | Under some national accounting requirements exploration and development costs for oil and gas properties in the development or production phases are accounted for in cost centres that include all properties in a large geographical area. A first-time adopter using such accounting under previous GAAP may elect to measure oil and gas assets at the date of transition to IFRSs on the following basis: The entity shall test exploration and evaluation assets and assets in the development and production phases for impairment at the date of transition to IFRSs in accordance with IFRS 6 Exploration for and Evaluation of Mineral Resources or IAS 36 respectively and, if necessary, reduce the amount determined in accordance with (a) or (b) above. For the purposes of this paragraph, oil and gas assets comprise only those assets used in the exploration, evaluation, development or production of oil and gas. exploration and evaluation assets at the amount determined under the entity’s previous GAAP; and assets in the development or production phases at the amount determined for the cost centre under the entity’s previous GAAP. The entity shall allocate this amount to the cost centre’s underlying assets pro rata using reserve volumes or reserve values as of that date. |
Leases
D9A | If a first-time adopter made the same determination of whether an arrangement contained a lease in accordance with previous GAAP as that required by IFRIC 4 but at a date other than that required by IFRIC 4, the first-time adopter need not reassess that determination when it adopts IFRSs. For an entity to have made the same determination of whether the arrangement contained a lease in accordance with previous GAAP, that determination would have to have given the same outcome as that resulting from applying IAS 17 Leases and IFRIC 4. |
Decommissioning liabilities included in the cost of property, plant and equipment
D21A | An entity that uses the exemption in paragraph D8A(b) (for oil and gas assets in the development or production phases accounted for in cost centres that include all properties in a large geographical area under previous GAAP) shall, instead of applying paragraph D21 or IFRIC 1: measure decommissioning, restoration and similar liabilities as at the date of transition to IFRSs in accordance with IAS 37; and recognise directly in retained earnings any difference between that amount and the carrying amount of those liabilities at the date of transition to IFRSs determined under the entity’s previous GAAP |