Global Standards for the world economy

Wednesday 19 December 2018

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IFRS 1 First-time Adoption of International Financial Reporting Standards—Subsidiary as a first-time adopter


 Work in progress–Tentative agenda decision

IFRS 1 First-time adoption of International Financial Reporting Standards—Subsidiary as a first-time adopter

The IFRS Interpretations Committee (the Committee) received a request to clarify the accounting applied by a subsidiary that becomes a first-time adopter of IFRS Standards later than its parent.  More specifically, the request asks whether, applying paragraph D16 of IFRS 1 First-time Adoption of International Financial Reporting Standards, the subsidiary is permitted to recognise cumulative translation differences (CTD) at the amount that would be included in the parent’s consolidated financial statements, based on the parent’s date of transition to IFRSs.