4. An entity need not apply IAS 21 The Effects of Changes in Foreign Exchange Rates retrospectively to fair value adjustments and goodwill arising in business combinations that occurred before the date of transition to IFRSs. If the entity does not apply IAS 21 retrospectively to those fair value adjustments and goodwill, it shall treat them as assets and liabilities of the entity rather than as assets and liabilities of the acquiree. Therefore, those goodwill and fair value adjustments either are already expressed in the entity’s functional currency or are non-monetary foreign currency items, which are reported using the exchange rate applied in accordance with previous GAAP.

 5. An entity may apply IAS 21 retrospectively to fair value adjustments and goodwill arising in either:

a)    All business combinations that occurred before the date of transition to IFRSs; or

b)    All business combinations that the entity elects to restate to comply with IFRS 3, as permitted by paragraph C1 above.