First-Time Adoption of IFRS

Question 1

How many balance sheets must an entity include for the first IFRS financial statements?

Answer 1

Three(End of current period, end of prior period, and beginning of prior period)

Question 2

How many statements of comprehensive income, income statements, cash flows, and statements of changes in equity and related notes?

Answer 2

Two

Question 3

What is the date of transition to IFRS?

Answer 3

The date of the opening balance sheet

Question 4

Adjustments needed to restate assets and liabilities in conformity with IFRS should be made directly to?

Answer 4

Retained earnings at the date of transition to IFRS

Question 5

What type of value can be deemed cost of fixed assets, investment property, or intangible assets?

Answer 5

Fair value

Question 6

What is the list of the mandatory exceptions to the retrospective application of IFRS at the time of the initial adoption of IFRS?

Answer 6

Derecognition of financial assets and financial liabilities, hedge accounting, non-controlling interests, classification and measurement of financial assets, and embedded derivatives

Question 7

What should the entity disclose about the transition?

Answer 7

How the transition from previous GAAP to IFRS affected its reported financial position, finacial performance, and cash flows.

Question 8

What should the disclosure of the transition to IFRS include?

Answer 8

A reconciliation

Question 9

On an opening IFRS balance sheet, an entity may not elect to use fair value to report?

Answer 9

Inventory