Objective
The objective of this IFRS is to ensure that an entityβs first IFRS financial statements, and its interim financial reports for part of the period covered by those financial statements, contain high quality information that:
- is transparent for users and comparable over all periods presented;
- provides a suitable starting point for accounting in accordance with International Financial Reporting Standards (IFRSs); and
- can be generated at a cost that does not exceed the benefits.
Scope
An entity shall apply this IFRS in:
- its first IFRS financial statements; and
- each interim financial report, if any, that it presents in accordance with IAS 34 Interim Financial Reporting for part of the period covered by its first IFRS financial statements.
Recognition and measurement
An entity shall prepare and present an opening IFRS statement of financial position at the date of transition to IFRSs. This is the starting point for its accounting in accordance with IFRSs.
Defined terms
date of transition to IFRSs The beginning of the earliest period for which an entity presents full comparative information under IFRSs in its first IFRS financial statements.
deemed cost An amount used as a surrogate for cost or depreciated cost at a given date. Subsequent depreciation or amortisation assumes that the entity had initially recognised the asset or liability at the given date and that its cost was equal to the deemed cost.
fair value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. (See IFRS 13.)
first IFRS financial statements The first annual financial statements in which an entity adopts International Financial Reporting Standards (IFRSs), by anexplicit and unreserved statement of compliance with IFRSs.
first IFRS reporting period The latest reporting period covered by an entityβs first IFRS financial statements.
first-time adopter An entity that presents its first IFRS financial statements.
International Financial Reporting Standards (IFRSs) Standards and Interpretations issued by the International Accounting Standards Board (IASB). They comprise:
- International Financial Reporting Standards;
- International Accounting Standards;
- IFRIC Interpretations; and (d) SIC Interpretations.
opening IFRS statement of financial position An entityβs statement of financial position at the date of transition to IFRSs.
previous GAAP The basis of accounting that a first-time adopter used immediately before adopting IFRSs.
Disclosure
This IFRS does not provide exemptions from the presentation and disclosure requirements in other IFRSs.
Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters (Amendment to IFRS 1) was approved for issue by the fifteen members of the International Accounting Standards Board.