Question 2
ABC, Inc. is adopting IFRS for the first time, effective December 31, 2016. Their opening statement of financial position will be as of January 1, 2014. The IASB has issued a new standard that is effective as of January 1, 2016.
Required:
Explain whether:
ABC, Inc. should present all of their statements of financial position using the new standard;
ABC, Inc. should present their statement of financial position as of December 31, 2016, using the new standard and present their other statements of financial position using the old standard; or
ABC, Inc. should not use the new standard for any of their statements of financial position presented.
What explicit statement is required in a set of IFRS first-time adoption financial statements?
1