First-time Adoption of International Financial Reporting Standards, was developed by the IASB to provide some relief to enterprises preparing their first annual financial statements in complete compliance with IFRSs.
IFRS 1 provides a number of elective options, generally based on a cost/benefit consideration. For example, the current version of IFRS 1 includes an elective exemption from the application of IFRS 3, Business Combinations, to past business combinations. In addition, there are some mandatory exemptions for those areas involving management’s judgment that would be applied with the benefit of hindsight, for example, the derecognition of financial assets and financial liabilities, hedge accounting and estimates. The IASB released a communiqué on September 25, 2008 indicating some modifications to IFRS1 – directed primarily towards restating prior year results for companies using full cost accounting and operations subject to rate regulation, which would provide little if any benefit to users of financial statements. Stay tuned!
Edelkoort | Smethurst | Schein CPAs LLP is located in Burlington Ontario servicing the Golden Horseshoe and Greater Toronto Area and beyond. The firm is fully licensed with CPA Ontario to provide assurance, tax and accounting services as well as registered as tax preparers with the Canada Revenue Agency (CRA) & Internal Revenue Service (IRS). The firm is also registered as an IRS Certified Acceptance Agent.
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