2.14 EXCEPTIONS AND EXEMPTIONS IN THE CONTEXT OF COMPARABILITY
2.14.1 Categories of Exceptions and Exemptions
IFRS 1 requires retrospective application of accounting policies in the opening first IFRS statement of financial position. However, mainly on the grounds of cost/benefit or impracticability, it introduces certain derogations.
IFRS 1 identifies two groupings: 1) exceptions to the retrospective application of certain IFRSs, and 2) exemptions from some requirements of certain IFRSs.322 It then subdivides the exceptions into two main classes: estimates, and other exceptions.323 It also splits the second category, exemptions, into the exemption for past business combinations,324 other exemptions,325 and short-term exemptions.326 The classification has been evolving over time. Paragraph 2.14.5 following explains the rationales under such derogations in IFRS 1.