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

2.9 ACCOUNTING POLICIES

2.9.1 Basic Rule

As a basic principle in IFRS 1, an entity must check which IFRSs are in force at the end of its first IFRS reporting period (i.e., the reporting date) and use these, not earlier versions, in its opening IFRS statement of financial position and in the first IFRS financial statements including comparative information.103

Comment: IFRS 1 contains relaxations to the application to comparative periods. Furthermore, Paragraph 2.19.10.13 following explains that a transition to IFRSs by a subsidiary, associate, or joint venture later than its parent, investor, or joint venturer, respectively, may affect the set of IFRSs adopted.

2.9.2 Effective Date Threshold

IFRS 1 states that an IFRS first-time adopter applies IFRSs in effect at its first IFRS reporting date, not at the date of issuance or authorization for issuance of the first IFRS financial statements.104 This topic has particular implications in case of earlier adoption of an IFRS (Paragraph 2.9.4 that follows), or EU-GAAP (Paragraph 2.9.6 following). Interim financial information under IFRSs in SEC filings (Paragraph 2.15.6 that follows) is another specific application.

Planning Point: For the purpose of IFRS annual or interim financial information in SEC filings in the transition year, a foreign private issuer may use “IFRS as issued” or “IFRS as published”. Under these concepts, the company uses IFRSs that are issued or published by the issuance of the financial information. Conversely, ...