Effective date and transition methods

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The IASB amended IFRS 1, First Time Adoption of IFRS, to eliminate references to fixed dates for one exception and one exemption, both dealing with financial assets and liabilities.

The first change requires first-time adopters to apply the derecognition requirements of IFRS prospectively from the date of transition, rather than from 1 January 2004.The second amendment relates to financial assets or liabilities at fair value on initial recognition where the fair value is established through valuation techniques, in the absence of an active market. The amendment means that a first-time adopter does not need to determine the fair value of financial assets and liabilities for periods prior to its date of transition. IFRS 9 has also been amended to reflect these changes.

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