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These amendments address:
Government Loans
Paragraphs 39N and 39O are added and B1 is amended.
39N 'Government Loans' (Amendments to IFRS 1), issued in March 2012, added paragraphs B1(f) and B10–B12. An entity shall apply those paragraphs for annual periods beginning on or after 1 January 2013. Earlier application is permitted.
39O Paragraphs B10 and B11 refer to IFRS 9. If an entity applies this IFRS but does not yet apply IFRS 9, the references in paragraphs B10 and B11 to IFRS 9 shall be read as references to IAS 39 'Financial Instruments: Recognition and Measurement'.
B1 An entity shall apply the following exceptions:
(a) derecognition of financial assets and financial liabilities (paragraphs B2 and B3);
(b) hedge accounting (paragraphs B4–B6);
(c) non-controlling interests (paragraph B7);
(d) classification and measurement of financial assets (paragraph B8);
(e) embedded derivatives (paragraph B9) and
(f) government loans (paragraphs B10–B12).
After paragraph B9 a heading and paragraphs B10–B12 are added.
Government loans
B10 A first-time adopter shall classify all government loans received as a financial liability or an equity instrument in accordance with IAS 32 'Financial Instruments: Presentation'. Except as permitted by paragraph B11, a first-time adopter shall apply the requirements in IFRS 9 'Financial Instruments' and IAS 20 'Accounting for Government Grants and Disclosure of Government Assistance' prospectively to government loans existing at the date of transition to IFRSs and shall not recognise the corresponding benefit of the government loan at a below-market rate of interest as a government grant. Consequently, if a first-time adopter did not, under its previous GAAP, recognise and measure a government loan at a below-market rate of interest on a basis consistent with IFRS requirements, it shall use its previous GAAP carrying amount of the loan at the date of transition to IFRSs as the carrying amount of the loan in the opening IFRS statement of financial position. An entity shall apply IFRS 9 to the measurement of such loans after the date of transition to IFRSs.
B11 Despite paragraph B10, an entity may apply the requirements in IFRS 9 and IAS 20 retrospectively to any government loan originated before the date of transition to IFRSs, provided that the information needed to do so had been obtained at the time of initially accounting for that loan.
B12 The requirements and guidance in paragraphs B10 and B11 do not preclude an entity from being able to use the exemptions described in paragraphs D19–D19D relating to the designation of previously recognised financial instruments at fair value through profit or loss.
Each company shall apply the amendments at the latest, as from the commencement date of its first financial year starting on or after 1 January 2013.