First-Time Adoption of IFRS

Question 1

When is the “transition date” for IFRS

Answer 1

The opening date of the earliest period for which full comparative financial statements under International Financial Reporting Standards (IFRS) are presented.

Question 2

When do International Financial Reporting Standards (IFRS) 1 apply?

Answer 2

In compliance with U.S. Generally Accepted Accounting Principles (GAAP);
in conformity with IFRS in all respects, except when an explicit and unreserved statement of compliance was not presented; but for internal use only; for consolidation purposes, but without a complete set of financial states or without presenting financial statements of previous periods;
In compliance with U.S. GAAP with reconciliation to IFRS;

Question 3

What statements are required upon first-time adoption of International Financial Reporting Standards (IFRS)?

Answer 3

Three statements of financial position, two statements of comprehensive income, two separate income statements, two statements of cash flow, and two statements of changes in equity.

Question 4

What are the mandatory exceptions for retrospective application of International Financial Reporting Standards (IFRS)?

Answer 4

Derecognition of financial assets and liabilities; hedge accounting; assets held for sale and discontinued operations; certain aspects of accounting for non-controlling interest, and use of certain estimates.

Question 5

What standards govern first-time adoption of IFRS?

Answer 5

IFRS 1.

Question 6

When does the “first reporting date” of IFRS happen?

Answer 6

The year-end date for the period for which International Financial Reporting Standards (IFRS) is first applied.