Question

Assume that an entity complied with IFRS guidance in all respects, except that the entity had never included an IFRS compliance statement in its financial statement footnote disclosures. Is the entity subject to the guidance for first-time adopters of IFRS? Use authoritative guidance to respond.

Answer 1

A first time adopter is an entity that, for the first time, he prepared his general purpose financial statements comply with IFRAs.

A entity deemed to be first time adopter if in the preceding year he prepared financial statement for internal use only, and not provide that financial statement to external parties such as investors or creditors.

An entity can also be a first time adopter if, in preceding year while preparation of financial statements asserted compliance with some but not all IFRSs. Or

Make reconciliation of some figures from pervious GAAP to IFRSs.

But if entity compliance with both pervious GAAP and IFRSs than he will not a first time adoptor