Question

1.How is the date of transition and the date of reporting determined in first-time adoption of IFRS?

2.Becker Ltd. is planning to adopt IFRS and prepare its first IFRS financial statements at December 31, 2021. What is the date of Becker's opening balance sheet, assuming one year of comparative information? What periods will be covered in Becker's first IFRS financial statements?

Answer 1

1.

International Financial Reporting Standards (IFRS) are adopted by the International Accounting Standards Board (IASB). They are considered as principle based standards.

A company first time adopting IFRS, it makes an unreserved statement that their financial statements comply with IFRSs. First time adopting means previous statements are compliance with some but or not IFRSs.

The date of transition is the beginning of the earliest period for which full comparative IFRS information is provided. The date of reporting is the closing balance sheet date for the first IFRS financial statements.

2. The date of the opening balance sheet is January 1, 2020. The IFRS financial statements will include years ended December 31, 2021 and 2020.