Scribd Logo
Upload

Welcome to Scribd!

  • 2 views

    Ifrs 1

    Uploaded by

    Getacher

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Ifrs 1

    Uploaded by

    Getacher
    2 views25 pages

    Original Title

    IFRS 1

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    2 views25 pages

    Ifrs 1

    Uploaded by

    Getacher

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 25

    x

    IFRS 1
    First-time Adoption
    of International
    Financial Reporting
    Standards
    Overview
     Objective
     Scope
     Definitions
     Recognition And Measurement
     Ethiopian Case
     Opening IFRS Statement Of Financial Position
     Accounting Policies
     Exceptions To The Retrospective Application Of
    Other IFRS
     Exemptions From Other IFRS
     Explanation Of Transition To IFRS
    Objective

    .
    is to ensure that an entity’s first IFRS
    financial statements,
    (A) Is transparent for users and
    comparable overall periods presented
    (B) provides a suitable starting point for
    accounting in
    accordance with (IFRSs); and
    (C) can be generated at a cost that does
    not exceed the benefits.
    Scope
    .

    An entity shall apply this


    IFRS in:

    (a) its first IFRS financial


    statements; and

    (b) On each interim


    financial report

    .
    Definitions
    .
    First IFRS financial
    First time Adopter
    Statements

    the first
    financial
    statements in
    an entity that which the
    presents Its entity adopts
    first IFRS IFRSs, by an
    financial explicit and
    statements unreserved
    . statement in
    those financial
    statements of
    compliance
    with IFRS
    Continued
    .
    Opening IFRS statement
    Date of transition
    of financial position:-

    the entity's the beginning


    statement of of the earliest
    financial period for
    position which an
    (balance entity
    sheet) at the presents full
    date of comparative
    transition information
    under IFRS.
    Recognition And
    Measurement

    .
    .
    Accounting .
    .
    .
    policies . .
    . .
    . .
    .
    .
    .
    ֎An entity shall use the same .
    . accounting policies in its
    .
    opening IFRS statement of .
    .
    financial position
    .
    .

    ֎ Early adoption is possible .


    .
    . .

    . .
    . .
    . .
    . .
    . . . .
    Continued
    Recognition

    De-recognition

    Reclassification

    Measurement

     The change recognized in Retained earning (or, if appropriate,


    another category of equity)
    Recognition Adjustment
     most internally generated intangible assets:
    research, brands

     staff training

     pre-operating/start-up costs

     advertising costs

     no accrued liabilities for general reserves, future


    losses, and most restructurings
    Continued
     obligations for other long-term employee benefits

     obligations for termination benefits

     obligations for, sick leave etc

     environmental restoration obligations

     obligations in court cases that entity will more likely


    than not lose

     deferred taxation
    Classification Adjustment
     dividends declared after the end of the reporting

    period are not liabilities

     treasury shares are a deduction from equity, they

    are not an asset

     non-controlling interests are equity, not liability


    Measurement Adjustment
     LIFO inventory cost formula prohibited

     reversals of prior period impairment is required

     expected value for provisions

     fair value measurement


    First-time adoption
    Ethiopia Phase 1(Including
    ethio telecom)

    Date of
    transitio
    Opening n to
    IFRS IFRS: 8
    SoFP: 8 July 2016
    July 2016
    First IFRS
    FS: 7 July
    2018
    First-time adoption
    Ethiopia Phase 2

    Who? Other Public Interest Entities

     Date of transition to IFRS: 8 July 2017

     Opening IFRS Statement of Financial Position: 8

    July 2017

     First IFRS financial statements: 7 July 2019


    Test Your Understanding
    1. An Entity’s first IFRS FS are for the year ended 30
    September 2019 (it presents one year of comparative
    figures). What is the Entity’s date of transition to IFRS?
    Choose one of:

    2. 1 October 2016

    3. 1 October 2017

    4. 1 October 2018

    5. 1 October 2019
    Test Your Understanding
    An Entity’s first IFRS for SMEs financial statements are for
    the year ended 31 December 2019 (it presents one year
    of comparative figures). What is the Entity’s date of
    transition to the IFRS for SMEs? Choose one of:

    1) 1 January 2017

    2) 1 January 2018

    3) 1 January 2019

    4) 1 January 2020
    Mandatory exceptions
    MUST NOT retrospectively change its Previous GAAP

    accounting for (specified aspects of):

     changes in accounting estimates

     Derecognition of financial assets and financial

    liabilities
    Continued
     non-controlling interests
    .
     classification & measurement of financial

    assets

     impairment of financial assets


     government loans
    Optional exemptions

    .
    Measurement at deemed cost’

    FV at the date of transition;

    revaluation under Previous GAAP


    Explanation of transition to
    IFRSs

     Sufficient (detail information)

     Distinguish between previous GAAP and IFRS

     Financial effect
    Statements To Be Produced
    During First Time Adoption
     Opening statement of financial position
     Comparative figures
     Complete set financial statement
     Statement of financial position
     Statement of profit and loss and other compensative income
     Statement of cash flows
     Statement change in equity
     Disclosures
    Thank You
    Questions and
    Discussion
    Case Study 1

     Facts
     ethio telecom presented its financial statements under its
    previous GAAP annually as at June 30 each year. The most
    recent financial statements it presented under its previous
    GAAP were as of June 30, 2017. ethio telecom decided to
    adopt IFRS as of June 30, 2018, and to present one-year
    comparative information for the year 2017.

     Required
     When should ethio telecom prepare its opening IFRS
    Statement of financial position?
    Case Study 2

     Facts
     ethio telecom presented its financial statements under the national GAAP
    of until 2017. It adopted IFRS from 2018 and is required to prepare an
    opening IFRS Statement of financial position as at July 1, 2016. In
    preparing the IFRS opening Statement of financial position ethio telecom
    Noted
     Under its previous GAAP, ethio telecom had deferred advertising costs of
    1,000,000 and had classified proposed state dividends of 50,000,000 as
    a current liability.
     It had not made a provision for warranty of 200,000 in the financial
    statements presented under previous GAAP since the concept of
    “constructive obligation” was not recognized under its previous GAAP.
     In arriving at the amount to be capitalized as part of costs necessary to
    bring an asset to its working condition, ethio telecom had not included
    professional fees of 300,000 paid to architects at the time when the
    building it currently occupies as branch office was being constructed.
     Required
     Advice ethio telecom on the treatment of all the above items under IFRS 1.

    You might also like