Fadi Halwani ID:71594 ACC420

(a) State the objective of IFRS1

To ensure that an entities first financial statements should contain high
quality information that:
- Is transparent to users and comparable for all periods presented.
- Provides a suitable starting point for accounting under international
standards.
- Can be generated at a cost that does not exceed the benefits to
users.

(b) Explain the terms first IFRS reporting period and date of
transition to IFRS as defined by IFRS1.
first IFRS reporting period: is defined as the reporting period covered
by the first IFRS statement.
date of transition to IFRS: is defined as the beginning of the earliest
period for which an entity presents comparative information in its first
IFRS statement.
(c) A company adopts international standards for the first time in its
financial statements for the year to 31 October 2016. These
financial statements provide comparative figures for the previous
five years. Explain the requirements of IFRS1 which must be
satisfied when preparing these financial statements.
The first IFRS reporting period is the year to 31 October 2016, since
the statement of financial position must be restated for the previous
two years. The date of transition to IFRS would be 1 November 2013.
(i) Prepare an opening IFRS Statement of Financial Position as at 1
November 2013
(ii) Use identical accounting policies in the opening of the IFRS
statement and in the financial statement for the year to 31
October 2016 while in comparative figures provide for the two
previous years that comply with IFRS.
(iii) Provide a reconciliation of equity as reported under previous
GAAP with equity reported under IFRS for 30 September 2013
and 30 September 2015
(iv) Provide a reconciliation of total comprehensive income as
reported under previous GAAP with total comprehensive income
as it would be reported under IFRS for the year to 30 September
2015.