An entity that apply IFRS for the First time in 31 Dec, 2014. up to which previous financial statements it should apply IFRS?

If an entity adopts IFRSs for the first time in its annual financial statements for the year ended31st December,2014:

 

1. Prepare following financial statements by applying IFRS effective at31/12/2014 

• At least2014 and2013 financial statements
• The opening balance sheet as of01/01/2012 or beginning of the first period for which full comparative financial statements are prepared, if earlier

2. Since IAS1 requires atleast one year of comparative prior period financial information be presented, the opening balance sheet will be01/01/2012 or earlier. This would mean that an entity's financial statement should include at least:

• 3 statements of financial position
• 2 statements of Profit or loss and other comprehensive income (separate or combined)
• 2 statement of cash flows
• 2 statement of changes in equity
• Related notes, including comparative information

3. Exceptions to the retrospective application of other IFRSs:

• Derecognition of financial instruments
• Hedge Accounting
• Non controlling interest
• Government loans
• Classification and measurement of financial assets
• Estimates

I will suggest a quick read on IFRS1 - First time adoption of IFRS. It will contain more detailed information on how to recognise assets and liabilities not recognised under previous GAAP, reclassification, how to recognise adjustments required to move from previous GAAP to IFRSs etc; 

Since International Acctg. Standards requires at least2 comparative financial reports, then at very least IFRS should apply January,2012 as beginning balances of all balance sheet accounts in preparations for2013 and2014 IFRS comparative fs.

Entity must start applying IFRS from the preceding year but only for internal management use and not for external use such as shareholder and auditors. 

I think that only financial statements of year2013 must be reclassified according to IFRS

Dear  Friends many thanks for every one who participated in discussion: to conclude we reach at following statement:

 Financial Statement of2014,2013 should be presented fully as per IFRS applicable and2013 opening balance sheet should be adjusted only for related IFRS applicable on relevant head of account and during the year2013 all transaction should be treated fully on IFRS applicable on relevant heads.

 

 

 

they want to convert only the comparitive period accounts to the IFRS accounts. 

NO, just transitional provisions are looked into.

this transactiion consider change in accounting policies so the entity treat it retrospective ie restatement 2013 accordance ifrs