Thursday 24 July 2014
The IASB identified the need to clarify whether an entity may apply IFRS 1:
The IASB noted that the scope of IFRS 1 focuses on whether an entity's financial statements are its 'first IFRS financial statements'.
The IASB decided that an entity that meets the criteria for applying IFRS 1 and that has applied IFRSs in a previous reporting period (regardless of whether it used IFRS 1 or SIC-8 First-Time Application of IASs, if either, when previously adopting) may choose to apply IFRS 1 when it re-adopts IFRSs.
An entity shall disclose the reason why it stopped applying IFRSs and the reason why it is resuming reporting in accordance with IFRSs. An entity that does not elect to apply IFRS 1 shall explain the reasons why it has elected to apply IFRSs as if it had never stopped applying IFRSs.
IASB tentatively decided to allow, rather than require, the repeated application of IFRS 1
The Interpretations Committee considered the comments received
The IASB tentatively decided to include the proposed amendment within the next Improvements to IFRSs Exposure Draft
(eIFRS subscription required)
© IFRS Foundation.