The Handbook to IFRS Transition and to IFRS U.S. GAAP Dual Reporting

2.8 TRANSITION DATE

2.8.1 Determination of the Transition Date

IFRS 1 defines the transition date as the beginning of the earliest full comparative period presented under IFRSs in the first IFRS financial statements. This date is particularly important because it is the date of the opening IFRS statement of financial position (Paragraph 2.12 following), which is the starting point of reporting under IFRSs. Furthermore, the entity must provide specific reconciliations at that date.102

Comment: The reason why the transition date is the beginning of the comparative period is to permit the comparison of at least two years under IFRSs (i.e., the current and the comparative period).

2.8.2 Transition Date when an Entity Presents More Than One Year of IFRS Comparative Financial Statements

Paragraph 2.13.7 following explains that an entity that presents more than one year of comparative information, whether on an elective or a regulatory requirement basis, does not need to recast those additional periods under IFRSs. However, this has an effect on the transition date.