Which of the following statements is true regarding the requirement of IFRS 1?

In April 2001 the International Accounting Standards Board (Board) adopted SIC‑8 First-time Application of IASs as the Primary Basis of Accounting, which had been issued by the Standing Interpretations Committee of the International Accounting Standards Committee in July 1998.

In June 2003 the Board issued IFRS 1 First-time Adoption of International Financial Reporting Standards to replace SIC‑8. IAS 1 Presentation of Financial Statements (as revised in 2007) amended the terminology used throughout IFRS Standards, including IFRS 1.

The Board restructured IFRS 1 in November 2008. In December 2010 the Board amended IFRS 1 to reflect that a first-time adopter would restate past transactions from the date of transition to IFRS Standards instead of at 1 January 2004.

Since it was issued in 2003, IFRS 1 was amended to accommodate first-time adoption requirements resulting from new or amended Standards. Most recently, IFRS 1 was amended by IFRS 17 Insurance Contracts (issued May 2017), which added an exception to the retrospective application of IFRS 17 to require that first-time adopters apply the transition provisions in IFRS 17 to contracts within the scope of IFRS 17.

Other Standards have made minor amendments to IFRS 1. They include Improvements to IFRSs (issued May 2010), Revised IFRS 3 Business Combinations (issued January 2008), Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters (Amendments to IFRS 1) (issued December 2010), IFRS 10 Consolidated Financial Statements (issued May 2011), IFRS 11 Joint Arrangements (issued May 2011), IFRS 13 Fair Value Measurement (issued May 2011), IAS 19 Employee Benefits (issued June 2011), Presentation of Items of Other Comprehensive Income (Amendments to IAS 1) (issued June 2011), IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine (issued October 2011), Government Loans (issued March 2012), Annual Improvements to IFRSs 2009–2011 Cycle (issued May 2012), Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12) (issued June 2012), Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) (issued October 2012), IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39) (issued November 2013), IFRS 14 Regulatory Deferral Accounts (issued January 2014), Accounting for Acquisitions of Interests in Joint Operations (Amendments to IFRS 11) (issued May 2014), IFRS 15 Revenue from Contracts with Customers (issued May 2014), IFRS 9 Financial Instruments (issued July 2014), Equity Method in Separate Financial Statements (Amendments to IAS 27) (issued August 2014), IFRS 16 Leases (issued January 2016), Annual Improvements to IFRS Standards 2014–2016 Cycle (issued December 2016), which deleted several lapsed short-term exemptions, IFRIC 22 Foreign Currency Transactions and Advance Consideration (issued December 2016), IFRIC 23 Uncertainty over Income Tax Treatments (issued June 2017), Amendments to References to the Conceptual Framework in IFRS Standards (issued March 2018) and Annual Improvements to IFRS Standards 2018–2020 (issued May 2020).

Thank for trying this quiz. If you’d like to keep improving your knowledge of IFRS, sign up for a subscription where you can access all our questions. We’d love to have you as a member; simply click here to find out more.

1. 1
2. 2
3. 3
4. 4

1. Current
2. Review
3. Answered
4. Correct
5. Incorrect

1. Question 1 of 4

   1. Question

   Which of the following does IFRS 1 require an entity to do in the opening IFRS statement of financial position that it prepares as a starting point for its accounting under IFRSs?

   • A) Recognise all assets and liabilities whose recognition is required by IFRSs
   • B) Not recognise items as assets or liabilities if IFRSs do not permit such recognition
   • C) Reclassify items that it recognised under previous GAAP as one type of asset, liability or component of equity, but are a different type of asset, liability or component of equity under IFRSs
   • D) Apply IFRSs in measuring all recognized assets and liabilities
   • E) All of the above
   • F) A and C

   Correct

   Incorrect

2. Question 2 of 4

   2. Question

   Which of the following is the starting point for an entity accounting in accordance with IFRSs?

   • The date when the decision about adopting IFRS has been made
   • The date of issuance of the first financial statement in accordance with IFRS
   • The date of transition to IFRSs
   • The date when the explicit and unreserved statement of compliance with IFRSs has been made

   Correct

   Incorrect

3. Question 3 of 4

   3. Question

   An entity’s first IFRS financial statements shall include at least __________, __________, two separate statements of profit or loss (if presented), two statements of cash flows, two statements of changes in equity and ____________, including comparative information for all statements presented.

   What is the objective of IFRS 1?

   The main objective of IFRS 1 is to ensure that the entity's financial statements that firstly adopted IFRS contain high quality of information for the benefit of users of Financial Statement.

   Which of the following must be included in an entity's first IFRS financial statements?

   An entity's first IFRS financial statements shall include at least three statements of financial position, two statements of profit or loss and other comprehensive income, two separate statements of profit or loss (if presented), two statements of cash flows and two statements of changes in equity and related notes, ...

   Which of the following are required in a complete set of IFRS compliant financial statements?

   The complete set of financial statements compliant with IFRS comprises 5 elements:.

   a statement of financial position as at the end of the period..

   a statement of comprehensive income for the period..

   a statement of changes in equity for the period..

   a statement of cash flows for the period..

   What are the 4 principles of IFRS?

   IFRS requires that financial statements be prepared using four basic principles: clarity, relevance, reliability, and comparability.