IFRS - GENERAL

Question 1

Under IFRS, are interim financial statements required?

Answer 1

IFRS does not require an entity to prepare interim financial statements.

Question 2

Under IFRS, if an entity chooses to prepare interim financials, what statements are required?

Answer 2

If an entity does provide interim financial statements, it will include a minimum of four condensed financial statements and selected notes.

Question 3

Under IFRS, if an entity chooses to prepare interim financials, what are the four mandatory statements that must be provided?

Answer 3

1. statements of financial position
2. profit and loss + other comprehensive income (can be shown as a single statement or as separate statements)
3. changes in equity
4. cash flows.

Question 4

When a company decides to adopt IFRS, what is the company’s date of transition to IFRS?

Answer 4

The date of transition is the date of the earliest statement of financial position presented in the first set if IFRS financial statements

Question 5

Upon IFRS transition, what is required to be included in the first set of IFRS financials?

Answer 5

A. 2 year’s income statements

B. 3 balance sheets.

** I.E. if transition occurs on July 1, year 2, balance sheets will be prepared as of 1/1/y1, 12/31/y1, and 12/31/y2. Therefore, 1/1/y1 would be the transition date.