NEW YORK-The International Accounting Standards Board (IASB) has amended on May 22, 2008 IFRS 1 “First-time Adoption of IFRSs” and IAS 27 “Consolidated and Separate Financial Statements” to change the way the cost of an investment in the separate financial statements is measured on first-time adoption of IFRSs.
The amendments to IFRS 1 and IAS 27 are:
• Allowing first-time adopters to use a deemed cost of either fair value or the carrying amount under previous accounting practice to measure the initial cost of investments in subsidiaries, jointly controlled entities and associates in the separate financial statements; and
• Removing the definition of the cost method from IAS 27 and replacing it with a requirement to present dividends as income in the separate financial statements of the investor.
The amendments to IFRS 1 and IAS 27 are effective beginning on or after January1, 2009, with earlier application permitted.
IASB is committed to developing in the public interest a single set of high quality global accounting standards.
For more information please visit the following website: www.iasb.org