IFRS 1

Question 1

What does IFRS 1 Cover?

Answer 1

IFRS 1 covers First Time Adoption of IFRS

Question 2

What is required under IFRS 1?

Answer 2

The company adopting IFRS 1 Standards for the first time must prepare a complete set of FS covering the first IFRS reporting period and the preceding year.

Question 3

What is the transition date?

Answer 3

The 1st day of your comparative year end.

Adopting on the 31.12.23 then the comparative year end will be 31.12.22 and the transition date will be 01.01.22

Question 4

What is prepared under IFRS 1 on the transition date?

Answer 4

We prepare a SOFP using IFRS 1, and this will be the foundation on which all future FS will be produced.

Question 5

What are the two exemptions under IFRS 1?

Answer 5

IAS 16 - the net book value of PPE can be assumed to be the fair value of the PPE at the transition date.

IFRS 3 - no need to apply IFRS 3 to business combinations before the transition date.

Question 6

For business combinations under IFRS 3 what can we do?

Answer 6

We can choose to not take the exemption from a specific year.
Ie 2017 2011 2004 1997. If we apply it to one year that we must apply to every year after that. 2004 2011 2017 onwards till transition date.