Ifrs ifrs 1 first application of international standards. First application of international financial reporting standards

IFRS 1

International standard financial statements(IFRS) 1
First application of international financial reporting standards

Target

1 Purpose of this IFRS ( IFRS ) - ensure thatthe first financial statements of the entity under IFRS ( IFRS ) and its interim financial statements for part of the period covered by those financial statements contained high quality information that:

(a) is transparent to users and comparable to all other periods presented;

(b ) provides an acceptable starting point for accounting according toInternational Financial Reporting Standards ( IFRS ) ; and

(c) the cost of preparing which does not exceed the benefits to users.

Scope of application

2 An entity shall apply this IFRS ( IFRS):

(a ) in the first financial statements under IFRS ( IFRS); and

(b ) in any interim financial statements, if any, presented in accordance with IFRS ( IAS) 34 "Interim financial reporting" for the part of the period covered by the first financial statements in accordance with IFRS ( IFRS).

3 The first financial statements of the entity under IFRS ( IFRS ) is the first annual financial statements in which the company adopts International Financial Reporting Standards ( IFRS ), clearly and unconditionally declaring in such financial statements that it complies with IFRS ( IFRS ). Financial statements in accordance with IFRS ( IFRS ) is the first financial statements of the company under IFRS ( IFRS ), if, for example, an enterprise:

(a) presented financial statements for the most recent prior period:

(i ) in accordance with national requirements that comply with International Financial Reporting Standards ( IFRS ) not in all respects;

(ii ) in accordance with International Financial Reporting Standards ( IFRS ) in all respects, except for the fact that the financial statements did not contain a clear and unconditional statement that they comply with International Financial Reporting Standards ( IFRS);

(iii ) containing a clear and unconditional statement that it complies with some, but not all, IFRS ( IFRS);

(iv ) in accordance with national requirements that do not comply with International Financial Reporting Standards ( IFRS ) using some separate IFRS ( IFRS ) to take into account items for which there were no national requirements; or

(v ) in accordance with national requirements, with the inclusion of a reconciliation of certain amounts with amounts determined in accordance with International Financial Reporting Standards ( IFRS);

(b ) prepared financial statements in accordance with International Financial Reporting Standards ( IFRS ) only for internal use, without making it available to the owners of the enterprise or any other external users;

(c ) prepared a reporting package in accordance with International Financial Reporting Standards ( IFRS ) for consolidation purposes without preparing a complete set of financial statements as defined in IFRS ( IAS) 1 "Presentation of financial statements" (as amended in 2007); or

(d) did not present financial statements for prior periods.

4 This IFRS ( IFRS ) applies when an entity first applies International Financial Reporting Standards ( IFRS). It does not apply if, for example, an enterprise:

(a ) discontinues the presentation of financial statements in accordance with national requirements if it has previously submitted, along with such statements, another set of financial statements containing a clear and unconditional statement of compliance with International Financial Reporting Standards ( IFRS);

(b ) presented financial statements for the previous year in accordance with national requirements, and these financial statements contained a clear and unconditional statement of compliance with International Financial Reporting Standards ( IFRS); or

(c ) presented the financial statements for the previous year, which contained a clear and unconditional statement of compliance with International Financial Reporting Standards ( IFRS ), even if in respect of these financial statements a audit report with a reservation.

5 This Standard does not apply to changes in accounting policies made by an entity already applying International Financial Reporting Standards ( IFRS). Such changes are subject to:

(a ) the requirements for changes in accounting policies contained in IFRS ( IAS) 8 Accounting Policies, Changes in Accounting Estimates and Errors; and

(b ) special requirements of the transition period contained in other IFRS ( IFRS).

Recognition and measurement

Elementary statement of financial position in accordance with IFRS ( IFRS)

The company must prepare and submitopening IFRS statement of financial position ( IFRS ) on the date of transition to IFRS ( IFRS ) ... This is the starting point for preparing the financial statements of an entity in accordance with IFRS ( IFRS).

Accounting policy

7 An entity shall use uniform accounting policies in preparing its opening IFRS statement of financial position ( IFRS ) and in all periods presented in its first IFRS financial statements ( IFRS ). This accounting policy must comply with all IFRS ( IFRS ) effective at the end of the first reporting period for which the company is reporting under IFRS ( IFRS ) , except as specified in paragraphs 13-19 and Annexes B-E.

8 An entity shall not apply other versions of IFRS ( IFRS ) that were in effect earlier. An entity may apply the new IFRS ( IFRS ), which has not yet become mandatory, if its early application is permitted.

9 The transitional conditions in other IFRSs apply to changes in accounting policies made by an entity already applying IFRSs; they are not usedfirst-time adopter of IFRS , upon transition to IFRS, except as specified in Appendices B-E.

10 Except as described in paragraphs 13-19 and Appendices B-E, an entity shall, in its opening IFRS statement of financial position:

(a) recognize all assets and liabilities that are required to be recognized under IFRS;

(b) do not recognize items as assets or liabilities if IFRS does not permit such recognition;

(c) reclassify items recognized by an entity under previous GAAP as one class of assets, liabilities or components of equity, but that are a different class of assets, liabilities or components of equity in accordance with International Financial Reporting Standards (IFRS); and

(d) apply IFRS when measuring all recognized assets and liabilities.

11 An entity's accounting policies in preparing its opening IFRS statement of financial position may differ from those that it applied at that date using previous GAAP. Consequently, adjustments arise from events and transactions prior to the date of transition to International Financial Reporting Standards (IFRSs). Therefore, an entity should recognize these adjustments directly in retained earnings (or, where appropriate, in another category of equity) at the date of transition to IFRSs.

12 This IFRS establishes two categories of exemptions from the principle that an opening IFRS statement of financial position must be consistent with each IFRS:

(a) paragraphs 14-17 and Appendix B prohibit retrospective application of some aspects of other IFRSs;

(b) Applications CE is exempt from some of the requirements of other IFRSs.

Exceptions to retrospective application in other IFRSs ( IFRS)

13 This IFRS ( IFRS ) prohibits retrospective application of certain aspects of other IFRSs. These exceptions are set out in clauses 14-17 and Appendix B.

Estimated estimates

14 An entity's estimates in accordance with IFRSs at the date of transition to IFRSs must be consistent with estimates made at the same date in accordance with previous GAAP (after adjustments to reflect differences in accounting policies), unless objective evidence exists that such estimates were erroneous.

15 An entity may obtain information after the date of transition to IFRS ( IFRS ) the estimates it has made under previous GAAP. Paragraph 14 requires an entity to account for the receipt of this information in the same way as non-adjusting events after the reporting period under IFRS ( IAS) 10 "Events after the end of the reporting period" ... For example, let's say that the date of transition of an entity to IFRS ( IFRS ) - 1 January 20X4 and new information at 15 July 20X4 requires a revision of the estimate made under previous GAAP at 31 December 20X3. An entity should not reflect this new information in its opening IFRS statement of financial position ( IFRS ) (unless the estimates need to be adjusted for differences in accounting policies or there is objective evidence that the estimates were in error.)Instead, the entity should reflect this new information in its income statement (or, where appropriate, other comprehensive income) for the year ended 31 December 20X4.

16 An entity may need to make estimates in accordance with IFRS ( IFRS ) at the date of transition to IFRS ( IFRS ) that were not required at that date under previous GAAP. To achieve compliance with IFRS ( IAS ) 10 these estimates are in accordance with International Financial Reporting Standards ( IFRS ) must reflect the conditions that existed at the date of transition to International Financial Reporting Standards ( IFRS ). In particular, at the date of transition to IFRS ( IFRS ) estimates of market prices, interest rates or exchange rates foreign currencies should reflect market conditions on that date.

17 Paragraphs 14-16 apply to the opening IFRS statement of financial position ( IFRS ). They also apply to the comparative period presented in the entity's first IFRS financial statements ( IFRS ); in this case, references to the date of transition to IFRS ( IFRS ) are replaced by references to the end of that comparative period.

Exemption from requirements of other IFRSs

18 An enterprise may choose to use one or more of the exemptions contained in Annexes C to E. An entity does not need to apply these exemptions by analogy with other items.

19 Some exceptions to those presented in Annexes C-E refer tofair value ... In determining fair value in accordance with this IFRS ) an entity shall apply the definition of fair value in Appendix A and any more specific guidance in other IFRSs ( IFRS ), in determining the fair value of the asset or liability in question. Such fair value should reflect conditions that existed at the date when the fair value was determined.

Presentation and disclosure of information

20 N This IFRS does not provide for exemptions from the presentation and disclosure requirements in other IFRSs.

Comparative information

21 To comply with IAS 1, an entity's first IFRS financial statements must include at least three statements of financial position, two statements of comprehensive income (if presented), two statements of cash flows , two statements of changes in equity, and related notes, including comparative information.

Comparative information that does not meet the requirements of IFRS ( IFRS ) and data summaries for previous years

22 Some entities present summaries of sample data for periods prior to the first period for which they present full comparative information in accordance with IFRS ( IFRS ). This standard does not require such extracts to meet the requirements IFRS ) by recognition and measurement. Moreover, some entities present comparative information under previous GAAP in the same way as the comparative information required under IFRS ( IAS ) 1. In any financial statements that contain extracts or comparative information under previous GAAP, an entity must:

(a) clearly identify information presented under previous GAAP as not being prepared in accordance with International Financial Reporting Standards (IFRS); and

(b) Disclose the nature of the major adjustments that would make it compliant with International Financial Reporting Standards (IFRS). The enterprise does not need to define quantification such adjustments.

Notes on the transition to International Financial Reporting Standards (IFRS)

23 An entity should explain how the transition from previous GAAP to IFRSs affected its financial position, financial results activities and cash flow.

Reconciliation

24 To comply with paragraph 23, an entity's first IFRS financial statements must include:

(a) Reconciliation of reported capital under previous GAAP to capital under IFRS at both of the following dates:

(i ) date of transition to IFRS ( IFRS); and

(ii) the end date of the most recent period presented in the entity's most recent annual financial statements under previous GAAP;

(b ) a reconciliation of total comprehensive income for IFRS for the most recent period of the most recent annual financial statements of the enterprise. The starting point for this reconciliation should be previous GAAP total comprehensive income for the same period or, if the entity did not report this indicator, profit or loss under previous GAAP;

(c ) if the entity first recognized or reversed any impairment loss in the preparation of the opening IFRS statement of financial position ( IFRS ), the disclosures that would be required under IFRS ( IAS) 36 Impairment of assets if the entity had recognized those impairment losses, or reverse entries for them, in a period beginning from the date of its transition to IFRSs ( IFRS).

25 The reconciliations required by paragraphs 24 (a) and ( b ) must be detailed enough to enable users to understand material adjustments to the statement of financial position and statement of comprehensive income. If the entity presented a cash flow statement under previous GAAP, then the entity should also clarify significant adjustments in the statement of cash flows.

26 If an entity learns of errors made in using previous GAAP in the reconciliations required by paragraph 24 (a) and ( b ), a distinction should be made between adjusting such errors and changes in accounting policies.

27 IAS 8 does not apply to changes in accounting policies that an entity makes when applying IFRSs or changes in policy after the entity presents its first IFRS financial statements. Therefore, the requirements in IAS 8 regarding changes in accounting policies do not apply in an entity's first IFRS financial statements.

27A If an entity, during the period covered by its first IFRS financial statements, changes its accounting policies or uses the exceptions in this IFRS, it shall explain the changes between its first interim financial report IFRS and the first IFRS financial statements in accordance with paragraph 23, and update the reconciliation required by paragraph 24 (a) and (b).

28 If an entity has not presented financial statements for prior periods, then this fact should be disclosed in its first IFRS financial statements ( IFRS).

Definition of financial assets or financial liabilities

29 An entity may designate a previously recognized financial asset as a financial asset measured at fair value through profit or loss for the period in accordance with paragraph D19A.An entity shall disclose the fair value of financial assets so allocated at the date of classification, and their classification and book value in previous financial statements.

29 A An entity may designate a previously recognized financial liability as a financial liability at fair value through profit or loss for the period in accordance with paragraph D19.An entity shall disclose the fair value of the financial liability so allocated at the date of classification, and its classification and carrying amount in previous financial statements.

Use of fair value as a contingent original cost

30 If an entity uses fair value in its opening IFRS statement of financial position asdeemed cost for an item of property, plant and equipment, investment property or intangible asset (see paragraphs D5 and D7), the entity's first IFRS financial statements shall disclose, on a separate line item basis, in the opening IFRS statement of financial position:

(a) the sum of these fair values; and

(b) the amount of balance sheet adjustments reported in accordance with previous GAAP.

Use of deemed cost of investments in subsidiaries, jointly controlled entities and associates

31 Similarly, if an entity uses deemed cost in its opening IFRS statement of financial position to account for investments in subsidiaries, jointly controlled entities and associates in its separate financial statements (see paragraph D15), then the first separate financial an entity's IFRS statements must disclose the following information:

(but)the aggregate deemed cost of those investments for which the deemed cost is their previous GAAP carrying amount;

(b) the aggregate deemed cost of those investments for which the deemed cost is their fair value; and

(c) cumulative fair value adjustments recorded in accordance with previous GAAP.

Usage deemed historical cost of oil and gas assets

31A If an entity uses the exemption in paragraph D 8 A (b ) for all oil and gas assets, it must disclose that fact and the basis on which the previous GAAP carrying amounts were allocated.

Use of deemed acquisition cost for transactions subject to rate regulation

31B If an entity uses the exemption in paragraph D8B for rate-regulated transactions, it shall disclose that fact and the basis used to determine the carrying amount in accordance with previous GAAP.

Using deemed cost after severe hyperinflation

31 C If an entity elects to measure assets and liabilities at fair value and use that fair value as deemed cost in its opening IFRS statement of financial position as a result of severe hyperinflation (see paragraphs D26- D 30), the entity's first IFRS financial statements must disclose an explanation of how and why the entity used and then stopped using a functional currency that has both of the following characteristics.:

a reliable general price index is not available for all businesses with foreign currency transactions and balances.

lack of fungibility between a currency and a relatively stable foreign currency.

Interim financial reporting

32 To comply with paragraph 23, when presenting interim financial statements under IFRS ( IAS ) 34 for the part of the period covered by the first IFRS financial statements ( IFRS ), the entity must meet the following requirements in addition to the requirements of IFRS ( IAS) 34:

(a) each interim financial statements must, if the entity presented one for a comparable interim period immediately preceding fiscal year, turn on:

(i ) reconciliation of equity under previous GAAP at the end of that comparable interim period with equity under IFRS ( IFRS) on that date; and

(ii ) a reconciliation of its total comprehensive income in accordance with IFRS ( IAS ) for this comparable interim period (current and cumulative year-to-date). The starting point for this reconciliation is previous GAAP total comprehensive income for the period or, if the entity does not present such a measure, previous GAAP profit or loss.

(b ) in addition to the reconciliations required in paragraph (a), the entity's first interim financial statements in accordance with IFRS ( IAS ) 34, for the part of the period covered by the first financial statements in accordance with IFRS ( IFRS ) must include the reconciliations described in paragraph 24 (a) and ( b ) (supplemented with the details required in paragraphs 25 and 26), or a cross-reference to another published document that includes these reconciliations.

(c) If an entity changes its accounting policies and uses the exceptions in this Standard, it shall explain the changes in each such interim financial statements in accordance with paragraph 23 and update the reconciliations required by paragraphs (a) and (b). ...

33 In IAS 34) minimum disclosures are required, which is based on the assumption that users of the interim financial statements also have access to the most recent annual financial statements. However, in IFRS ( IAS 34) also requires an entity to disclose “any events or transactions material to an understanding of the current interim period”. So if IFRS ) did not disclose information material to an understanding of the current interim period in its most recent previous GAAP annual financial statements, its interim financial statements must disclose that information or include a cross-reference to another published document that includes it.

Effective date

34 An entity shall apply this IFRS ( IFRS ), if the financial statements of the enterprise, first prepared in accordance with IFRS ( IFRS ), compiled for the period beginning on or after July 1, 2009. The standard is permitted for earlier periods.

35 An entity shall apply the amendments in paragraphs D1 (n) and D23 for annual periods beginning on or after 1 July 2009. If an entity applies IFRS ( IAS) 23 "Borrowing costs" (as revised in 2007) for an earlier period, the amendments shall apply for that earlier period.

36 IFRS 3 "Business combinations" (as revised in 2008) amended paragraphs 19, C1 and C4 (f) and (g). If an entity applies IFRS ( IFRS ) 3 (as revised in 2008) to an earlier period, the amendments indicated should be applied in relation to such an earlier period.

37 IAS 27 "Consolidated and Separate Financial Statements" (as revised in 2008) amended paragraphs 13 and B7. If an entity applies IFRS ( IAS

38 Cost of an investment in a subsidiary, jointly controlled entity or associate (Amendments to IFRS ( IFRS 1 and IAS ) 27) supplemented paragraphs 31, D1 (g), D14 and D15. An entity shall apply those paragraphs for annual periods beginning on or after 1 July 2009. Earlier application is permitted. If an entity applies those paragraphs for an earlier period, the entity shall disclose that fact.

39 Publication Improvements to IFRSs released in May 2008. amended paragraph B7. An entity shall apply those amendments for annual periods beginning on or after 1 July 2009. If an entity applies IFRS ( IAS ) 27 (as revised in 2008) to an earlier period, the amendments should be applied in relation to such an earlier period.

39 A B amendment to IFRS 1 "D Additional exemptions for first-time adopters of IFRS " released in July 2009 have added items 31 A, D 8 A, D 9 A and D 21 A and amended paragraph D 1 (c), (d) and (l ). An entity shall apply those amendments for annual periods beginning 1 January 2010 on or after that date. Earlier application is permitted. If an entity applies those amendments for an earlier period, it shall disclose that fact.

39B [Deleted]

39C IFRIC Interpretation 19 "Extinguishing financial liabilities with equity instruments Added paragraph D25. An entity shall apply the amendment when it applies IFRIC 19.

39 D B amendment to IFRS 1 « Limited exemption from IFRS 7 comparative disclosures for first-time adopters ”, Issued in January 2010, item E3 was added. An entity shall apply this amendment for annual periods beginning on or after 1 July 2010. Earlier application is permitted. If an entity applies the amendment for an earlier period, the entity shall disclose that fact.

39E Publication " Improvements to IFRS ”, Issued in May 2010, added paragraphs 27A, 31B and D8B and amended paragraphs 27, 32, D1 (c) and D8. An entity shall apply those amendments for reporting periods beginning on or after 1 January 2011. Earlier application is permitted. If an entity applies the amendments for an earlier period, it shall disclose that fact. Entities that applied IFRSs for periods prior to the effective date of IFRS 1 or applied IFRS 1 in a previous period are permitted to apply the amendment to paragraph D8 retrospectively in the first reporting year that the amendment becomes effective. An entity that applies paragraph D8 retrospectively is required to disclose that fact.

39F B amendment to IFRS 7 " Disclosures - transfers of financial assets ”, Released October 2010, added clause E4. An entity shall apply the amendment for annual periods beginning on or after 1 July 2011. Earlier application is permitted. If an entity early adopts the amendment, it must disclose that fact.

39G Through IFRS 9 "Financial instruments ”, Issued in October 2010, amended paragraphs 29, B1-B5, D1 (j), D14, D15, D19 and D20, added paragraphs 29A, B8, B9, D19A-D19D, E1 and E2, and deleted paragraph 39B. An entity shall apply those amendments when it applies IFRS 9 as issued in October 2010.

39H In paragraphs B2, D1 and D20 of the publication “Severe hyperinflation and cancellation of fixed dates for first-time adopters of IFRS ”(Amendments to IFRSs), issued in December 2010, amended and added paragraphs 31C and D26-D30. An entity shall apply those amendments for annual periods beginning on or after 1 July 2011. Earlier application is permitted.

Cancellation of IFRS 1 (issued in 2003)

40 This IFRS supersedes IFRS 1 (issued in 2003, as amended in May 2008).

Appendix A

Definition of terms

IFRS).

Appendix B

Exceptions retrospective application in other IFRSs ( IFRS)

This appendix forms an integral part of this IFRS ( IFRS ).

IN 1 An entity shall apply the following exemptions:

(a) derecognition of financial assets and financial liabilities (paragraphs B2 and B3);

(b) hedge accounting (paragraphs B4 - B6);

(c ) minority share(paragraph B7)

(d ) classification and measurement of financial assets(paragraph B8) and

(e) embedded derivatives (paragraph B9).

Derecognition of financial assets and financial liabilities

B2 Except as permitted by paragraph B3, a first-time adopter shall apply prospectively the derecognition requirements in IFRS RS) 9 " Financial instruments », To transactions made on or after January 1, 2004. In other words, if a first-time adopter of IFRSs derecognized financial assets or financial liabilities other than derivatives under its previous GAAP as a result of a transaction entered into prior to 1 January 2004, it should not recognize those assets, and liabilities under IFRS (unless they qualify for recognition as a result of a later transaction or event).

B3 Notwithstanding paragraph B2, an entity may apply the derecognition requirements in IFRS 9 retrospectively from the date that the entity made that choice, provided that the information required to apply IFRS 9 to financial assets and financial liabilities derecognised as a result of past transactions were received at the time the transactions were initially recorded.

Hedge accounting

B4 In accordance with the requirements of IFRS 9, at the date of transition to IFRSs, an entity must:

(a) measure all derivatives at fair value; and

(b) exclude all deferred gains and losses arising from derivatives that were reported under previous GAAP as assets or liabilities.

B5 An entity shall not present in its opening IFRS statement of financial position a hedging relationship that does not qualify for hedge accounting in IAS 39 (for example, many hedging relationships where the hedging instrument is monetary instrument or an issued option; or where the hedged item is a net position). However, if an entity designated a net position as a hedged item under previous GAAP, it may designate a separate line item under that net position as a hedged item under IFRSs, provided that it does so no later than the date of transition to IFRSs ( IFRS).

AT 6 If, prior to the date of transition to IFRSs, an entity designated a transaction as a hedge, but the hedge does not meet the conditions for hedge accounting in IAS 39, the entity shall apply paragraphs 91 and 101 of IAS 39 to discontinue hedge accounting. ... Transactions initiated before the date of transition to IFRSs should not be designated retrospectively as a hedge.

Minority share

B7 An enterprise that first usesIFRSs shall apply the following requirements of IAS 27 (as amended in 2008) prospectively from the date of transition to IFRSs:

(a) the requirement in paragraph 28 that total comprehensive income be attributed to the owners of the parent and to the minority interest, even if this results in a negative balance of the minority interest;

(b) the requirements in paragraphs 30 and 31 to account for changes in a parent's interest in a subsidiary that do not result in a loss of control; and

(c) the requirements in paragraphs 34--37 to account for the loss of control of a subsidiary and the related requirements in paragraph 8A of IFRS 5Non-current assets held for sale and discontinued operations.

However, if a first-time adopter of IFRS, decides to retrospectively apply IFRS 3 (as revised in 2008) to a business combination, it shall apply IAS 27 (as revised in 2008) in accordance with paragraph C1 of this IFRS.

Classification and measurement of financial assets

B8 An entity shall assess whether a financial asset meets the conditions in paragraph 4.1.2 of IFRS 9 on the basis of the facts and circumstances that exist at the date of transition to IFRSs.

Embedded derivatives

B9 A first-time adopter shall assess whether an embedded derivative should be separated from the host contract and accounted for as a derivative on the basis of conditions that existed at a later date. next dates: the date it first became a party to the contract and the date that the revaluation was required in accordance with paragraph B4.3.11 of IFRS 9.

Appendix C
Business combinations

This appendix forms an integral part of this IFRS ( IFRS ). An entity shall apply the following requirements for business combinations recognized by the entity prior to the date of transition to IFRSs ( IFRS).

WITH 1 First-time adopter of IFRS ( IFRS ), may decide not to apply IFRS ( IFRS ) 3 (as revised in 2008) retrospectively to past business combinations (business combinations occurring prior to the date of transition to International Financial Reporting Standards ( IFRS )). However, if a first-time adopter ( IFRS ), restates the data for any business combination to comply with IFRS ( IFRS ) 3 (as revised in 2008), it must restate all subsequent business combinations and apply IFRS ( IAS ) 27 (as revised in 2008) from the same date. For example, if a first-time adopter ( IFRS ), decides to restate data for a business combination that occurred on 30 June 20X6, it must restate data for all business combinations that occurred between 30 June 20X6 and the date of transition to IFRS ( IFRS ), as well as apply IFRS ( IAS ) 27 (as revised in 2008) from 30 June 20X6.

C2 An entity is not required to apply IFRS ( IAS) 21 "The Impact of Changes in Foreign Exchange Rates »Retrospectively to fair value adjustments and goodwill arising on business combinations that occurred before the date of transition to IFRS ( IFRS ). If an entity does not apply IFRS ( IAS ) retrospectively 21 to such fair value and goodwill adjustments, it should account for them as assets and liabilities of the entity, and not as assets and liabilities of the acquiree. WITHConsequently, the goodwill and fair value adjustments are either already denominated in the entity's functional currency or are non-monetary foreign currency items that are reported using the exchange rates applied in accordance with previous GAAP.

C3 An entity may apply IFRS ( IAS ) 21 retrospectively to fair value and goodwill adjustments arising from:

(a ) or for all business combinations that occurred prior to the date of transition to International Financial Reporting Standards ( IFRS); or

(b ) for all business combinations that an entity chooses to restate in order to comply with IFRS ( IFRS ) 3 as permitted by C1 above.

C4 If a first-time adopter of IFRS ( IFRS ), does not apply IFRS ( IFRS ) 3 in retrospect to a past business combination, this would have the following implications for that business combination:

(a IFRS ) must adhere to the same classification as in the financial statements compiled under previous GAAP (as an acquisition by a formal acquirer, reacquisition by a formally acquired entity, or a pooling of interests);

(b ) a first-time adopter of IFRS ( IFRS ) must be recognized at the date of transition to IFRS ( IFRS ) all of its assets and liabilities acquired or received in a business combination in the past, except:

(i) certain financial assets and financial liabilities that were derecognised under previous GAAP (see paragraph B2); and

(ii ) assets, including goodwill, and liabilities that were not recognized in the acquirer's consolidated statement of financial position under previous GAAP and would not have met the recognition criteria under International Financial Reporting Standards ( IFRS ) in the acquiree's separate statement of financial position (see paragraphs (f) - (i) below).

First-time adopter of IFRS ( IFRS ), shall recognize any resulting changes by adjusting retained earnings (or, if appropriate, another category of equity), unless the change arises from the recognition of an intangible asset not previously separated from goodwill (see paragraph ( g) (i)).

(c ) first-time adopter of IFRS(IFRS ), must exclude from its opening IFRS statement of financial position ( IFRS ) any line item recognized under previous GAAP that does not meet the criteria for recognition as an asset or liability under IFRS ( IFRS ). First-time adopter of IFRS ( IFRS ) should take into account the resulting change as follows:

(i) a first-time adopter of IFRS (IFRS), could classify a business combination in the past as an acquisition and recognize it as an intangible asset in accordance with IFRS (IAS) 38 "Intangible assets" an item that does not meet the criteria for recognition as an asset.It shall reclassify this line item (and, if any, related deferred tax and minority interest) as part of goodwill (unless it deducted goodwill directly from equity in accordance with previous GAAP, see paragraph (g) (i) and (i) below. );

(ii)A first-time adopter of IFRSs must recognize all other resulting changes in retained earnings.

(d)IFRS requires certain assets and liabilities to be subsequently measured on a basis other than cost, for example, fair value. A first-time adopter of IFRSs shall measure those assets and liabilities on that basis in its opening IFRS statement of financial position, even if they were acquired or acquired in a past business combination. It should recognize any resulting change in the carrying amount by adjusting retained earnings (or, where appropriate, another category of equity) rather than goodwill.

(e) immediately after the business combination, the carrying amount of assets acquired and liabilities assumed as a result of this business combination, under previous GAAP, will be their deemed cost at that date under IFRS (IFRS). If IFRS (IFRS) subsequently require these assets and liabilities to be measured at cost, then this deemed cost will be the basis for depreciation of property, plant and equipment, or intangible assets based on actual costs from the date of the business combination.

(f) if the acquired asset or commitment made in a business combination in the past that were not recognized under previous GAAP, then their deemed cost should not equal nil in the opening IFRS statement of financial position (IFRS). Instead, the acquirer must recognize and measure them in its consolidated statement of financial position on a basis that IFRS (IFRS) would be required upon recognition in the statement of financial position of the acquired enterprise.To illustrate:If, in accordance with previous GAAP, the acquirer did not capitalize a finance lease acquired in a past business combination, it must capitalize that lease in its consolidated financial statements in the same way as IFRS (IAS) 17 "Rent" would require the acquiree to make in its IFRS statement of financial position (IFRS). Similarly, if, under previous GAAP, the acquirer did not recognize a contingent liability that still exists at the date of transition to IFRSs (IFRS), the acquirer shall recognize that contingent liability at that date, unless IFRS (IAS) 37 "Provisions, Contingent Liabilities and Contingent Assets" would prohibit its recognition in the financial statements of the acquirer. Conversely, if the asset or liability was not separated from goodwill in accordance with previous GAAP, but would have been recognized separately in accordance with IFRS (IFRS) 3, then the asset or liability will remain in goodwill if IFRS (IFRS) do not require their recognition in the financial statements of the acquired enterprise;

(g) the carrying amount of goodwill in the opening IFRS statement of financial position (IFRS), will be its carrying amount under previous GAAP at the date of transition to IFRS (IFRS) after the following two amendments:

(i) if the requirement of the above paragraph (c)(i), then a first-time adopter of IFRS (IFRS) must increase the carrying amount of goodwill upon reclassification of an item it recognized as an intangible asset in accordance with previous GAAP. Similarly, if paragraph (f) above is required for a first-time adopter of IFRS (IFRS) recognizes an intangible asset that has not been separated from the recognized goodwill in accordance with previous GAAP, then a first-time adopter (IFRS), must reduce the carrying amount of goodwill accordingly (and, if applicable, adjust the deferred tax and non-controlling interest);

(ii) whether or not there is any indication that goodwill is impaired, a first-time adopter (IFRS), must apply IFRS (IAS) 36 to test goodwill for impairment at the date of transition to IFRS (IFRS) and recognition of the resulting impairment loss in retained earnings (or, if IFRS (IAS) 36 requires - in the increase in property value from revaluation). The impairment test should be based on conditions existing at the date of transition to IFRSs (IFRS);

(h) no other adjustments to the carrying amount of goodwill at the date of transition to IFRSs (IFRS) should not be produced. For example, a first-time adopter of IFRS (IFRS) does not need to restate the carrying amount of goodwill:

(i) to exclude research and development in progress acquired in that business combination (unless the related intangible asset is to be recognized in accordance with IFRS (IAS) 38 in the statement of financial position of the acquired company);

(ii) to adjust the previous amortization of goodwill;

(iii) to reverse goodwill adjustments that are not permitted by IFRS ( IFRS ) 3, but were made in accordance with previous GAAP due to adjustments to assets and liabilities between the date of the business combination and the date of transition to International Financial Reporting Standards (IFRS).

(i) if a first-time adopter (IFRS), recognized goodwill under previous GAAP as a deduction from equity:

(i) it shall not recognize such goodwill in its opening IFRS statement of financial position (IFRS). In addition, it should not carry that goodwill to profit or loss if it sells a subsidiary or the investment in that subsidiary is impaired;

(ii) adjustments caused by subsequent resolution of contingent fact economic activity that affects the acquisition cost should be recognized in retained earnings;

(j) under previous GAAP, a first-time adopter of IFRS (IFRS) may not have a consolidated subsidiary acquired in a business combination in the past (for example, the parent did not treat it as a subsidiary under previous GAAP or did not prepare consolidated financial statements). First-time adopter of IFRS (IFRS), must adjust the carrying amounts of the assets and liabilities of the subsidiary to amounts that IFRS (IFRS) would be required in the subsidiary's statement of financial position. The deemed cost of goodwill is equal to the difference existing at the date of transition to International Financial Reporting Standards (IFRS):

(i) between the parent's ownership interest in these adjusted carrying amounts; and

(ii) the value of the investment in the subsidiary in the parent's separate financial statements;

(k) the measurement of non-controlling interest and deferred tax is a consequence of the measurement of other assets and liabilities. Consequently, such adjustments to recognized assets and liabilities affect non-controlling interests and deferred tax.

C5The exemption for past business combinations also applies to past acquisitions of investments in associates and interests in joint ventures.Moreover, the date indicated in clause C1 applies equally to all acquisitions.

ApplicationD
Exemptions from other IFRSs

This appendix forms an integral part of this IFRS ( IFRS ).

D1 An entity may elect to use one or more of the following exemptions:

(a) share-based payment transactions (paragraphs D2 and D3);

(b) insurance contract (paragraph D4);

(c) fair value or revaluation as deemed cost (paragraphsD5- D8 B );

(d) rent (items D9 and D 9 A );

(e) employee benefits (paragraphsD10 andD11);

(f) accumulated differences when translated into another currency (pointsD12 and D13);

(gInvestments in subsidiaries, jointly controlled entities and associates (paragraphs D14 and D15);

(h) assets and liabilities of subsidiaries, associates and joint ventures (paragraphsD16 and D17);

(i) combined financial instruments (paragraphD18);

(j) definition of previously recognized financial instruments (paragraphsD19- D 19 D );

(kMeasurement at fair value of financial assets or financial liabilities at initial recognition (paragraph D20);

(l) decommissioning obligations included in the cost of property, plant and equipment (paragraphs D21 and D 21 A );

(m) financial assets and intangible assets accounted for in accordance with IFRIC 12"Concession agreements for the provision of services" (paragraph D22)

(n) borrowing costs (paragraph D23);

(o) transfers of assets from customers (paragraph D24);

(p) cancellation of financial liabilities with equity instruments (paragraph D25);

(q) severe hyperinflation (paragraphs D26 - D30).

An entity should not apply these exemptions by analogy to other items.

Share-based payment transactions

D2 It is encouraged but not required that a first-time adopter (IFRS), applied IFRS (IFRS) 2 "Payment based on shares" to equity instruments granted on or before November 7, 2002. It is also encouraged, but not required, that a first-time adopter of IFRS (IFRS), to equity instruments that were granted after November 7, 2002 and transferred before a later of the following dates:(a) the date of transition to IFRSs and (b) 1 January 2005.However, if a first-time adopter (IFRS), decides to apply IFRS (IFRS) 2 to such equity instruments, then it can only do so if it has already disclosed to the public the fair value of those equity instruments, determined at the measurement date, as defined in IFRS (IFRS) 2. For all grants of equity instruments to which IFRS 2 has not been applied (for example, equity instruments granted on or before 7 November 2002), a first-time adopter must still disclose information required by paragraphs 44 and 45 of IFRS 2. If a first-time adopter changes the terms or conditions for granting equity instruments to which IFRS 2 has not been applied, the entity is not required to apply paragraphs 26-29 of IFRS (IFRS) 2, if the change occurred beforethe date of transition to IFRS.

D3It is encouraged but not required that a first-time adopter of IFRS (IFRS), applied IFRS (IFRS) 2 to liabilities arising from share-based payment transactions that were settled prior to the date of transition toIFRS... It is also encouraged, but not required, that a first-time adopter of IFRS (IFRS), applied IFRS (IFRS) 2 to liabilities that were settled before 1 January 2005. For liabilities to which IFRS applies (IFRS) 2, from a first-time adopter of IFRS (IFRS), there is no need to restate comparative information insofar as this information relates to a period or date before November 7, 2002.

Insurance contracts

D4 First-time adopter of IFRS (IFRS) may apply the transitional conditions contained in IFRS (IFRS) 4 "Insurance contracts" ... IFRS (IFRS) 4 restricts changes in accounting policies for insurance contracts, including changes made by a first-time adopter (IFRS).

Haveword initial value

D5An entity may measure an item of property, plant and equipment at the date of transition to IFRSs at its fair value and use that fair value as the deemed cost at that date.

D6A first-time adopter of IFRSs may elect to use the revalued amount of an item of property, plant and equipment at the date (or earlier) of the transition to IFRSs (or earlier) as the deemed cost at the date of the revaluation if the revalued amount was in general at the date of the revaluation. comparable:

(a)with fair value; or

(b)cost or amortized cost in accordance with IFRS, adjusted to reflect, for example, changes in the general or special price index.

D7The exceptions described in clauses D5 and D6 may also be used:

(a)for investment property if the entity chooses to use the cost model under IAS 40"Investment property" ; and

(b)for intangible assets that meet:

(i)the recognition criteria in IAS 38 (including reliable measurement of cost); and

(ii)the revaluation criteria in IAS 38 (including the existence of an active market).

An entity should not apply these exemptions to other assets or liabilities.

D8 A first-time adopter may have established an estimated cost under previous GAAP for some or all of its assets and liabilities by measuring them at fair value at one specific date as a consequence of an event, such as privatization or initial public offering.

(a) If the measurement date is the date of transition to IFRSs or an earlier date, an entity may use that event-driven fair value measurement as the estimated cost for IFRS purposes at the date of that measurement.

(b) If the measurement date is later than the date of transition to IFRSs, but during the period covered by the first IFRS financial statements, the event-driven fair value measurement may be used as the estimated cost if such events occur. The entity shall recognize the related adjustments directly in retained earnings (or, if appropriate, in some other category of equity) at the measurement date. At the date of transition to IFRSs, an entity must either establish an estimated cost using the criteria in paragraphs D5 – D7, or measure assets and liabilities in accordance with the other requirements in this Standard.

D8 AIn accordance with some national accounting requirements, the exploration and development costs of oil and gas assets during the development or production phases are accounted for in cost accounting, which includes all property, plant and equipment within a large geographic area. First-time adopter of IFRS ( IFRSs ) that uses such accounting in accordance with previous GAAP may measure oil and gas assets at the date of transition to IFRSs on the following basis:

(a) research and assessment of assets at the amount established in accordance with the previous GAAP of the enterprise; and

(b) assets under development or production at the amount established for cost accounting under the entity's previous GAAP. The entity must proportionally allocate this amount to the underlying cost accounting assets using reserve quantities or inventory valuation at that date.

An entity shall test its exploration and evaluation assets and assets in the development and production stages for impairment at the date of transition to IFRSs (IFRSs) in accordance with IFRS (IFRS) 6 "Exploration and evaluation of mineral reserves "Or IFRS (IAS) 36, respectively, and, if necessary, reduce the amount specified in paragraphs. (a) or (b) above. For the purposes of this paragraph, oil and gas assets include only those assets that are used in the exploration, evaluation, development or production of oil and gas.

D8B Some entities own items of property, plant and equipment or intangible assets that are or were previously used in rate-regulated transactions. The carrying amount of such items may have included amounts that were determined in accordance with previous GAAP but did not qualify for capitalization in accordance with IFRS. In such a case, a first-time adopter may elect to use the previous GAAP carrying amount of the item at the date of transition to IFRSs as the estimated cost. If an entity applies this exemption to an item, it is not required to apply that exemption to all items. At the date of transition to IFRSs, an entity shall test for impairment in accordance with IAS 36 each item for which this exemption is applied. In the context of this clause, transactions are transactions subject to tariff regulation if they supply goods or services to customers at prices (i.e. tariffs) established by an authorized body, which has the right to set tariffs that are binding on customers and are designed to recover certain costs. incurred by the enterprise in the provision of regulated goods or services, as well as receiving nominal income. Nominal income can be defined as a minimum income level or range and is not necessarily fixed or guaranteed income.

Rent

D9First-time adopter of IFRS (IFRS), may apply the conditions for the transition to a new accounting procedure established in the Interpretation of the IFRIC (IFRIC) 4 "Determination of the presence in the agreement of a lease agreement" ... Therefore, a first-time adopter of IFRS (IFRS) may determine whether a lease provides for an arrangement that exists at the date of transition to IFRS (IFRS), based on the facts and circumstances existing at that date.

D9 AIf a first-time adopter has made the same determination as to whether a lease is in accordance with previous GAAP as required by IFRIC 4, but not on the date required by IFRIC 4, then the entity, a first-time adopter of IFRSs, there is no need to reassess this definition when applying IFRSs. For an entity to be able to make the same determination as to whether a lease provides for a lease in accordance with previous GAAP, that determination must produce the same effect as applying IAS 17 "Rent »And IFRIC 4.

Employee benefits

D10According to IFRS (IAS) 19 "Employee benefits" an entity may choose to use the corridor approach, in which some actuarial gains and losses are not recognized. With retrospective application this approach the entity is required to split the cumulative actuarial gains and losses from the start date of the plan to the date of transition to IFRS (IFRS) into recognized and unrecognized parts.However, a first-time adopter of IFRSs may recognize all accumulated actuarial gains and losses at the date of transition to IFRSs, even if it uses the corridor method for subsequent actuarial gains and losses. If nfirst-time adopter of IFRS (IFRS) makes such a decision, it must apply it to all plans.

D11An entity may disclose amounts as required by paragraph 120A (p) of IAS 19, as these amounts are determined prospectively for each reporting period starting from the date of transition to IFRSs.

Accumulated differences when translated into another currency

D12IAS 21 requires an entity:

(a)Recognize some translation differences in other comprehensive income and accumulate them in a separate component of equity; and

(b) on disposal of a foreign operation, reclassify the cumulative difference on translation into another currency attributable to that foreign operation (including, where applicable, gains and losses on related hedges) from equity to profit or loss as part of the gain or loss on disposal.

D13However, a first-time adopter does not need to comply with these requirements for cumulative translation differences that existed at the date of transition to IFRSs.

(a)accumulated differences on translation into other currencies for all foreign operations are assumed equal to zero at the date of transition to IFRS; and

(b)profit or loss on the subsequent disposal of any foreign operation shall not include translation differences from one currency to another that arose prior to the date of transition to IFRSs, but shall include subsequent differences.

Investments in subsidiaries, jointly controlled entities and associates

D14When an entity prepares separate financial statements, IAS 27 requires the entity to account for investments in subsidiaries, jointly controlled entities and associates:

(a) either at cost or

(b) in accordance with IFRS (I FRS ) 9.

D15 If a first-time adopter (IFRS) measures such investments at cost in accordance with IFRS ( IAS ) 27 , it must reflect such investments as one of the following in its opening IFRS statement of financial position:

(a) cost determined in accordance with IAS 27; or

(b) deemed cost. The deemed cost of such investments will be:

(i) their fair value (determined in accordance with IFRS (I FRS ) 9) at the date of transition of the entity to IFRS (IFRS) in its separate financial statements; or

(ii) their previous GAAP carrying amount at that date.

A first-time adopter may choose (i) or (ii) to measure its investment in a subsidiary, jointly controlled entity or associate.that the entity measures using deemed cost.

Assets and liabilities of subsidiaries, associates and joint ventures

D16 If a subsidiary first applies IFRSs after the parent has applied them, the subsidiary shall measure assets and liabilities in its financial statements at a cost that is either:

(a)the carrying amount that would have been included in the parent's consolidated financial statements based on the date of transition of the parent to IFRSs if no adjustments were made for consolidation purposes and to reflect the results of the business combination in which the parent acquired the subsidiary; or

(b)the carrying amount required by the rest of this IFRS, determined at the date of transition to IFRSs of the subsidiary. This carrying amount may differ from that described in paragraph (a):

(i)if the exemptions in this IFRS result in measurements dependent on the date of transition to IFRSs;

(ii)when the accounting policies used in the financial statements of the subsidiary differ from those used in the consolidated financial statements. For example, a subsidiary may use the cost model under IAS 16 as its accounting policy."Fixed assets" , while the group may use the revaluation model.

This choice is available for an associate or joint venture that first adopts IFRSs later than an entity with significant influence or joint control over them.

D17However, if IFRS is applied by the parent after the application by the subsidiary (or associate or joint venture), then the entity must measure the assets and liabilities of its subsidiary (or associate or joint venture) in its consolidated financial statements. at the same carrying amount as in the financial statements of the subsidiary (or associate or joint venture), after consolidation adjustments, adjustments in equity and to reflect the results of the business combination in which the parent acquired the subsidiary. Similarly, if a parent applies IFRSs for its separate financial statements after or before applying them to its consolidated financial statements, then the entity shall measure its assets and liabilities at the same amounts in both financial statements, except for adjustments for consolidation.

Combined financial instruments

D18IAS 32"Financial Instruments: Presentation of Information" requires the entity to split the compound financial instrument into separate debt and equity components from the outset. If the debt component no longer exists, retrospective application of IAS 32 results in the separate recognition of the two elements in equity. The first element is included in retained earnings and represents the accumulated interest accumulated in the debt component. The other element is the original equity component. However, this IFRS does not require a first-time adopter of IFRSs to separate the two if the debt component no longer exists at the date of transition to IFRS.

Definition of previously recognized financial instruments

D19 IFRS 9 permits a financial liability to be classified as a financial liability at fair value through profit or loss (provided it meets certain criteria). Notwithstanding this requirement, an entity is permitted to classify, at the date of transition to IFRSs, any financial liability as measured at fair value through profit or loss at that date, provided that the liability meets the criteria. in paragraph 4.2.2 of IFRS 9.

D19A An entity may classify a financial asset as at fair value through profit or loss in accordance with paragraph 4.1.5 of IFRS 9 based on the facts and circumstances at the date of transition to IFRSs.

D19B An entity may classify investments in equity instruments as measured at fair value through other comprehensive income in accordance with paragraph 5.7.5 of IFRS 9 based on the facts and circumstances at the date of transition to IFRSs.

D19C If it is impracticable for an entity (in accordance with IAS 8) to retrospectively apply the effective interest rate or the impairment requirements in paragraphs 58–65 and AG84 – AG93 of IAS 39, the fair value of a financial asset at the date of transition to IFRSs will be the new amortized cost of that financial asset at the date of transition to IFRSs.

D19D An entity shall determine whether applying the accounting treatment in paragraph 5.7.7 of IFRS 9 would create an accounting mismatch in profit or loss based on the facts and circumstances that exist at the date of transition to IFRSs.

Measurement of financial assets or financial liabilities at fair value

D20 Notwithstanding the requirements in paragraphs 7 and 9, an entity may apply the requirements in the last sentence of paragraph B5.4.8 and paragraph B5.4.9 of IFRS 9prospectively for transactions entered into at the date of transition to IFRS ( IFRS ) or after this date.

Decommissioning liabilities included in the cost of property, plant and equipment

D21In accordance with IFRIC 1“Changes in the existing obligations for the decommissioning, restoration natural resources and similar obligations " Certain changes in decommissioning, natural resource restoration or similar obligations are added to or deducted from the cost of the asset associated with that liability; the adjusted amortized cost of an asset is amortized prospectively over its life useful use... First-time enterpriseIFRS (IFRS) is not required to comply with these requirements for changes in such liabilities that occurred before the date of transition to IFRS (IFRS). If nfirst-time enterpriseIFRS (IFRS), uses this exception, it should

(a) measure the liability at the date of transition to IFRS (IFRS) in accordance with IFRS (IAS) 37;

(b) to the extent that the obligation is within the scope of the IFRIC Interpretations (IFRIC) 1, estimate the amount that would have been included in the cost of the related asset when the liability was first incurred by discounting the liability to that date using the best estimate of the historical risk-adjusted discount rate (s) that would have been applied to that liability by during the period of exposure; and

(c) calculate the accumulated depreciation at this amount at the date of transition to IFRS (IFRS) based on the current estimate of the useful life of the asset, applying the depreciation policy adopted by the entity under IFRS (IFRS).

D21 AEntity applying the exception in paragraphD8 A(b) (for oil and gas assets in development or production phases that are accounted for in cost accounting that include all property, plant and equipment within a major geographic area in accordance with previous GAAP) should instead of applying paragraphD21 or KRMFO (IFRIC) 1:

(a) evaluate the decommissioning of facilities,recovery of natural resources and similar liabilities at the date of transition to IFRS (IFRSs) in accordance with IFRS (IAS) 37; and

( b ) recognize directly in retained earnings the difference between this amount and the carrying amount of these liabilities at the date of transition to IFRS (IFRSs) established under its previous GAAP

Financial assets and intangible assets accounted for in accordance with the Interpretation of the IFRIC 12

D22First-time adopter of IFRS (IFRS) may use the transitional provisions set out in IFRIC 12.

Borrowing costs

D23 First-time adopter of IFRS (IFRS) may use the transitional provisions in paragraphs 27 and 28 of IFRS (IAS) 23 as amended in 2007. In these paragraphs, references to the effective date are replaced by January 1, 2009 or the date of transition to IFRS (IFRS) depending on which of the specified dates is later.

Transfer of assets from clients

D24 A first-time adopter may apply the transitional provisions in paragraph 22 of IFRIC 18 “Transfer of assets from clients ". In this paragraph, reference to the effective date means the later of the following dates: July 1, 2009 or the date of transition to IFRS. In addition, a first-time adopter may designate any date before the date of transition to IFRSs and apply IFRIC 18 to all transfers of assets from customers on or after that date.

Poga financial liabilities with equity instruments

D25 A first-time adopter may apply the transitional provisions in IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments.

Heavyhyperinflation

D26 If an entity uses a functional currency that was, or is, the currency of a hyperinflationary economy, the entity shall determine whether the currency was subject to severe hyperinflation prior to the date of transition to IFRSs (IFRS). This applies to entities that have used IFRS (IFRS) for the first time, as well as companies that previously used IFRS (IFRS).

D27 A currency in a hyperinflationary economy suffers severe hyperinflation if it has both of the following characteristics:

(a) A reliable general price index is not available for all enterprises with transactions and balances in foreign currency.

( b ) lack of fungibility between currency and relatively stable foreign currency.

D28 An entity's functional currency ceases to be subject to severe hyperinflation at the functional currency normalization date. This is the date when the functional currency no longer falls within the definition of one or both of the characteristics specified in clauseD27, or when the entity exchanges functional currency for a currency that is not subject to severe hyperinflation.

D29 If the date of transition of the entity to IFRS (IFRS) falls on or after the functional currency normalization date, an entity may elect to measure all assets and liabilities held prior to the functional currency normalization date at fair value at the date of transition to IFRSs (IFRS). An entity may account for this fair value as the deemed cost of these assets and liabilities in the opening IFRS statement of financial position.

D30 If the functional currency normalization date falls within a 12-month comparative period, the comparative period may be less than 12 months, provided that the complete set of financial statements is presented for that shorter period.

Appendix E
Short-term exemptions from IFRS

This appendix forms an integral part of this IFRS ( IFRS ).

E1 In its first IFRS financial statements, an entity that (a) adopts IFRS for annual periods beginning before 1 January 2012 and (b) applies IFRS 9 must present comparative information for at least one year. However, this comparative information need not be consistent with IFRS 7 Financial Instruments: Disclosures or IFRS 9 if the disclosures required by IFRS 7 relate to items within the scope IFRS 9. For such entities, only when applying IFRS 7 and IFRS 9, references to “date of transition to IFRS” indicate the beginning of the first IFRS reporting period.

E2 An entity that chooses to present comparative information that does not meet the requirements of IFRS 7 and IFRS 9 in its first year of transition to IFRSs must:

(a) Apply the recognition and measurement requirements under its previous GAAP instead of the requirements of IFRS 9 for comparative information about items within the scope of IFRS 9.

(b) disclose this fact together with the basis used to prepare this information.

(c) consider any adjustments between the statement of financial position at reporting date the comparative period (i.e. the statement of financial position that includes comparative information in accordance with previous GAAP) and the statement of financial position at the beginning of the first IFRS reporting period (i.e. the first period that contains information that complies with the requirements of IFRS 7 and IFRS 9) as arising from a change in accounting policy and make the disclosures required by paragraphs 28 (a) - (e) and (f) (i ) IAS 8. Paragraph 28 (f) (i) applies only to the amounts presented in the statement of financial position at the reporting date of the comparative period.

(d) apply paragraph 17 (c) of IAS 1 to provide additional disclosures when compliance with the specific requirements of AASB is insufficient to enable users to understand the effect of specific transactions, other events and circumstances on the entity's financial position and performance. ...

Disclosureinformation on financial instruments

E3 A first-time adopter of IFRS ( IFRSs ), can apply the conditions of transition to new order accounting prescribed in paragraph 44 G IFRS ( IFRS ) 7.

Such changes include reclassifications from intangible assets or to intangible assets if goodwill was not recognized as an asset under previous GAAP. This will happen if, under previous GAAP, an entity ( a) subtracted goodwill directly from equity capital or (b) did not account for the business combination as an acquisition.

Paragraph E3 was added as a result of the adoption of the amendment to IFRS (IFRS) 1 "Оlimited exemption from IFRS 7 comparative disclosures for first-time adopters "Released in January 2010. To avoid the potential use of later information about past events and to ensure that first-time adopters (IFRSsIFRSsIFRS) 7 "Improved disclosures in relation to financial instruments ».

Paragraph E4 was added as a result of the adoption of the amendment to IFRS (IFRS) 7 “Disclosure of Information — Transfer of Financial Assets”Released in October 2010. To avoid the potential use of later information about past events and to ensure that first-time adopters (IFRSs) there was no harm compared to current IFRS enterprises, the Board decided that first-time adopters should be allowed to use the same transition conditions that are allowed for enterprises preparing their financial statements in accordance with IFRS (IFRSs), which are included in the amendments to IFRS (IFRS) 7 "Disclosures — Transfers of Financial Assets ».

FTOIFRSBUT 11

In June 2003, the IASB Board published the new IFRS 1 First-time Adoption of IFRSs. It replaces SIC 8 “First time adoption of IFRS as primary basis of accounting”. Business entities are required to apply this standard when IFRS-compliant financial statements are first presented for a period after 01/01/2004. Earlier use of IFRS 1 is also approved.

Why IFRS 1 needs to be adopted?

1. Formation of financial statements according to the predictions of SIC 8 “Application of IFRS for the first time as the main basis of accounting” regarding the retrospective application of all international standards is associated with unreasonably high costs.
2. The number of companies that are implementing IFRS is steadily increasing. Accordingly, it became necessary to satisfy the need for a more detailed indication of information on the procedure for the formation of financial documentation in accordance with international standards.

Differences between IFRS 1 "First-time adoption of IFRS" from SIC 8 "First-time adoption of IFRS as the main accounting basis"

This standard is more user-friendly and brings more efficiency from its use in the preparation of financial statements in accordance with international standards. Advantages:

1. IFRS 1 First-time Adoption of IFRSs permits voluntary and mandatory exemptions from retrospective application of predictions from international standards for all users of financial documents.
2. This document provides clarifications on the organization's application of the most recent version of International Financial Reporting Standards for all information in financial documents, including comparative ones.
3. This standard establishes additional financial disclosure conditions that disclose the implications of implementation.

Objective of IFRS 1

The objective is to ensure that an entity presents high quality information in its first-time IFRS financial statements that:

• is transparent for users and allows comparisons for all presented periods;
• is the starting point for subsequent accounting in accordance with IFRS (provides an acceptable starting point between national standards and IFRS);
• can be obtained at a fairly adequate cost in relation to the benefits obtained (training costs do not exceed the benefits to the user).

Fundamentals of IFRS 1

1. Application of all requirements of all standards and interpretations in the case of a direct and unconditional statement in accordance with IFRS.
2. Recognition, write-off, re-qualification and revaluation of all assets and liabilities in accordance with the requirements of IFRS when forming the opening balance sheet in accordance with IFRS.
3. Retrospective application of IFRS requirements in all cases, except for the exceptions contained in the standard.
4. Prospective application of IFRS requirements in rare cases of high costs, inadequate benefits, and in cases of the need for ex post facto judgment.
5. Disclosure of the effects of changes in financial position, financial performance and cash flows as a result of the application of new standards.

When is an entity required to apply IFRS 1?

An entity shall apply the standard if the compiled financial documentation for the previous most recent period:

• was compiled in accordance with the requirements of national standards that differ from international ones;
• meets all the conditions for applying IFRS, but without an explicit and unquestioning statement about this fact;
• was formed with a specific statement of some similarity with international standards;
• was formed according to national and some (but not all) international standards;
• met national standards and was a comparison of some indicators in similar ones, which were obtained using IFRS.

IFRS 1 also applies if an entity:

• formed financial documentation in accordance with IFRS for internal accounting without showing it to managers and other users;
• did not compile a detailed set of financial documents in accordance with the requirements of international standards (for consolidation purposes);
• did not form financial statements for previous periods.

IFRS 1 does not apply

If the company has demonstrated financial statements in earlier periods that clearly and unconditionally comply with international standards and:

1. decided not to provide financial documentation according to national standards;
2. decided to remove the special requirement in reporting that national SBUs were in compliance with previously applied international standards;
3. the auditor's report does not contain the auditor's agreement with such a statement.

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A company moving from national standards to IFRS must follow the requirements of IFRS 1, the main of which is the full retrospective application of all IFRS standards in force at the reporting date of the first IFRS statements.

The process of transition to IFRS is not easy, as a result the IASB and developed the standard IFRS 1 "First-time adoption of IFRS", which came into force on 01.01.2004. It is mandatory for all companies that prepare financial statements in accordance with IFRS for the first time, and contains a clear algorithm for preparing such statements. This standard provides the definition of an entity's first IFRS financial statements, which is the first annual financial statements in which an entity adopts IFRS and makes a clear and unconditional statement of full compliance with IFRS.

IFRS financial statements will be the first financial statements in accordance with IFRS, if the company:

• submitted its most recent previous financial statements;
• prepared financial statements in accordance with IFRS for internal use only, not presenting them to the owners of the company or external users;
• prepared a set of statements in accordance with IFRS for consolidation purposes without preparing a complete set of financial statements;
• did not present financial statements for prior periods.

This standard cannot be applied if the company:

• ceases to present financial statements in accordance with national requirements, having previously submitted them, as well as a second set of financial statements containing a clear and unconditional statement of compliance with IFRS;
• in the previous year presented financial statements in accordance with national requirements and financial statements containing a clear and unconditional statement of compliance with IFRS;
• in the previous year presented financial statements containing a clear and unqualified statement of compliance with IFRS, even if the auditors based their auditor's report on these qualified financial statements.

There are a number of permissible and four mandatory exceptions to the requirement for retrospective application of IFRSs.

Allowable Exceptions apply to provisions of standards for which, in the opinion of the IASB, retrospective application may be too complex or may result in costs that exceed any benefit to the user. Permitted exceptions are voluntary. At management's discretion, permissible exceptions may be applied selectively or all at once, or the company may not use them at all.

Permitted exceptions apply to the following areas of accounting:

• - business combinations;
• - payments based on shares;
• - insurance contracts;
• - the use of fair value or revaluation as the deemed estimated cost of property, plant and equipment and some other assets;
• - rent;
• - employee benefits;
• - accumulated reserve of exchange rate differences;
• - investments in subsidiaries, jointly controlled and associated companies;
• - assets and liabilities of subsidiaries, associates, joint ventures;
• - combined financial instruments;
• - classification of previously recognized financial instruments;
• - measurement of the fair value of financial assets and liabilities at initial recognition;
• - reserves for liquidation activities and environmental restoration in the structure of fixed assets;
• - concession agreements in the field of social services;
• - borrowing costs.

Mandatory exceptions apply to areas of accounting in which retrospective application of IFRS requirements is considered inappropriate. The mandatory exemptions fall into four areas:

• estimated indicators;
• derecognition of financial assets and liabilities;
• hedge accounting;
• some aspects of accounting for non-control ownership.

Comparative information also presented in accordance with IFRS.

Nearly all first-time adjustments are credited to retained earnings at the beginning of the earliest period for which comparative information is presented in accordance with IFRS.

The first IFRS financial statements should also include a reconciliation of certain amounts presented in accordance with previous US GAAP and IFRSs.

Main stages of transition to IFRS

1. Determining the key date and transition date... That is, to establish the beginning of the earliest period for which comparative information is presented in the financial statements and the reporting date (the end of the most recent reporting period for which the financial statements are prepared).

2. Formation of accounting policies in accordance with IFRS... The same accounting policies should be used for all periods presented, including for opening balances under IFRS.

3. Definition of items of assets and liabilities under IFRS... At the same time, an asset or liability can be accepted for accounting under IFRS, even if they are not reflected in accounting for Russian standards, and vice versa.

4. Valuation of assets and liabilities under IFRS... Valuations for opening balances and amounts presented in financial statements under IFRS should be made in accordance with IFRS. As a result, all assets and liabilities recognized must be measured in accordance with IFRS in one of the following ways:

At cost;

At fair value, i.e. by the amount for which the asset can be exchanged or at which the liability can be extinguished in a transaction between informed, interested and independent parties;

At a discounted amount.

5. Adjustments to capital and reserves... After the company has completed all the steps listed above, a situation may arise when its value net assets will differ from the amount of capital and reserves formed in accordance with Russian legislation... According to IFRS 1, this difference must be reflected in retained earnings.

Difficulties and mistakes

One of the difficulties encountered when first adopting IFRS is determining the historical cost of property, plant and equipment. Often the company does not have this information and it becomes necessary to involve an independent appraiser. This problem is especially relevant for non-profit organizations, which are legally established to maintain accounting of fixed assets and their depreciation off the balance sheet. Therefore, when translating financial statements into IFRS format, a clear assessment of all fixed assets of a non-profit organization, including objects worth up to 40 thousand rubles, is required, and classification with respect to the source of acquisition and their use in entrepreneurial activity... For this, it is necessary to conduct a complete analysis of all primary documents for fixed assets accounting.

You should also pay attention to a typical mistake when all adjustments associated with the transition to IFRS are reflected in the profit (loss) of the reporting period, i.e. are actually counted twice: in the income statement for the current year and in comparative information. As a result, the valuation of assets and liabilities in the balance sheet complies with IFRS, and the profit recorded in the income statement does not equal the change in the corresponding indicators of the balance sheet at the end and beginning of the period. In this regard, it is necessary to attribute part of the adjustments to retained earnings of previous periods, and the corresponding transactions reflected in the current year by Russian rules accounting, exclude from the income statement.

The recalculation of all accounting data for the previous two years in accordance with IFRS causes significant difficulties for companies, therefore, in practice, many of them violate this requirement. They use the interim option under IAS 34 Interim Financial Reporting when the first published financial statements are preliminary. It includes only balance sheet at the date of transition to IFRS (that is, at the reporting date) or indicators for one year, but without comparable data for the previous period.

In addition, IFRS 1 requires the presentation of capital and net income adjustments based on Russian data to bring them in line with IFRS requirements. This means that an equity reconciliation must be presented, including at the date of transition to IFRS.

Most often, companies use the opportunity to measure certain non-current assets at fair value as deemed cost at the date of transition to IFRS. This voluntary exemption allows for the non-determination of the carrying amount of assets based on historical cost, taking into account depreciation and impairment losses, and taking into account hyperinflation.

When preparing financial statements in accordance with IFRS, the transformation of statements is most often used - the process of preparing financial statements in accordance with international standards by adjusting reporting items and regrouping accounting information prepared in accordance with RAS rules.

There is no single algorithm for transforming financial statements, and in each case, specialists use their own methodology that is optimal for the company.

More and more organizations in RAS apply IFRS standards, which is allowed by the requirements of clause 7 of PBU 1/2008 "Accounting policy of the organization". The transition to IFRS for such companies appears to be easier, since the number of transformational adjustments will be less.

For reference

Ministry of Finance Russian Federation on the official website on 08/01/2016 published a draft order that amends PBU 1/2008 "Accounting policy of the organization":

“An organization that discloses the consolidated financial statements prepared in accordance with international financial reporting standards or the financial statements of an organization that does not create a group, has the right to be guided by federal accounting standards when forming an accounting policy, taking into account the requirements of international financial reporting standards. If the application of the accounting method established by the federal accounting standard leads to inconsistency of the accounting policy of the said organization with the requirements of international financial reporting standards, the organization has the right not to apply this method.

If on a specific issue in the federal accounting standards are not established methods of accounting, then the organization develops an appropriate method, based on international financial reporting standards. "

For first-time adopters of international standards, IFRS 1 “First-time adoption of IFRSs” is addressed, which is used for the first financial statements under IFRS, as well as for interim statements presented for the part of the period covered by the first financial statements under IFRS. In such reporting, the company accepts all IFRS standards and makes a clear and unconditional statement of compliance with IFRS.

In the event that a company decides that it will not apply any IFRS in its first financial statements, these financial statements will not be considered compliant with IFRS. This can be reporting based on IFRS principles, for example, for management purposes. It should be noted that even if a company has applied all international standards, but has not made a statement of compliance with IFRS, such reporting is also not IFRS reporting.

In practice, questions often arise about the need to apply IFRS 1, if the company previously provided information for the preparation of the parent company's consolidated financial statements, but did not issue individual reporting according to IFRS. It is also possible that the company prepared IFRS statements for internal purposes, but did not present them to the owners or third-party users. In both of the above cases, the requirements of IFRS 1 should be followed when preparing the first set of financial statements.

It also often happens that the company previously prepared IFRS reporting, but then stopped for some time. In this case, one should proceed from an analysis of the costs of preparing financial statements: either issue financial statements as if the company did not allow a break, or reapply IFRS 1. When the standard is reapplied, the statements are prepared ignoring the effect of accounting policies applied in previous periods ...

When applying IFRS for the first time, it is important to understand what the transition date is and what period IFRS 1 recognizes as the first reporting period.

Rice. 1. Date of transition to IFRS

Algorithm for preparing the first financial statements under IFRS for 2016

Throughout the transition period, a unified accounting policy should be applied (in the example, the transition period is three years: 2014, 2015, 2016).

When preparing the first set of financial statements, certain steps need to be followed.

Step 1. All standards that are in effect on the first reporting date should be used. This means that if the transition date is 12/31/2014, and the reporting is prepared on 12/31/2016, then it is necessary to apply the standards that are in effect on 12/31/2016. At the same time, it is possible to use standards issued, but not yet effective, the early application of which is permitted at the first reporting date.

For example, IFRS 15 Revenue is effective from 01.01.2018, with early adoption permitted. It is advisable to prepare the first set of reports based on its requirements in order to avoid adjustments in the future, when the new standard becomes effective.

In practice, most companies apply new standards ahead of schedule (remember that not all new standards can be applied early).

Step 2. Determine the standards to be applied before the reporting date. For example, if he was in the company in 2015, but not in 2016.

Step 3... Determine the exceptions to be applied.

The general requirement of IFRS is to apply the requirements of all applicable IFRSs at the reporting date retrospectively. IFRS 1 allows two types of exemptions from retrospective application:

• mandatory exceptions;
• voluntary exceptions.

For reference

Mandatory exceptions are mandatory for all first-time adopters of IFRS. The essence of voluntary exclusions is the right to choose whether or not to apply these exclusions. They relate to the retrospective application of IFRS (that is, from the date of the transaction, as if the company had always applied IFRS).

Example of voluntary exemption: IFRS 1 allows a first-time adopter to measure an asset in the opening IFRS balance sheet using deemed cost for property, plant and equipment, investment property (using the cost model) and intangible assets (provided active market).

IFRS 1 requires an entity to use estimates for IFRS purposes that are consistent with the estimates adopted when national accounting standards were applied at that date. If there is objective evidence that these estimates were erroneous, estimates that differ from those used in RAS are used for IFRS purposes. An example is a change in the useful life of property, plant and equipment (in particular, when income is generated from the operation of fully depreciated equipment).

For reference

Errors are omissions and misstatements in the financial statements that arise from the failure to use or misuse reliable information, including the consequences of inaccuracies in calculations, misstatements in the application of accounting policies, underestimation or misinterpretation of facts, and fraud.

Practical example

IFRS 1 allows you to change estimates in the transition period (in the example - from 01/01/2015 to 12/31/2016). Thus, it is possible to change the useful lives of fixed assets and the depreciation method. The accounting model for fixed assets, established in the accounting policy under IFRS, remains unchanged: at initial or at revalued cost [p. 29 IAS 16]. In practice, it is better to change the timing and method of depreciation at the transition date.

Step 4... Build (organize) the preparation process and make it optimal. This will require regulating a set of measures:

1. determine the perimeter of consolidation (when preparing consolidated financial statements, the composition and structure of ownership are analyzed, direct, effective shares of ownership and shares of non-controlling shareholders are determined);
2. develop an accounting policy in accordance with IFRS (each organization included in the established perimeter of consolidation when preparing consolidated statements must use a unified accounting policy in accordance with IFRS);
3. analyze assets and liabilities at the date of transition to IFRS with a view to their recognition for the purposes of IFRS;
4. develop a methodology for transformation (or conducting parallel or combined accounting) and consolidation (when drawing up consolidated reporting), data collection packages, transformation models; it is first necessary to analyze the scope of the company, determine the main differences in reporting items between RAS and IFRS, and form a list of major adjustments.

Practical example

Upon transition to IFRS manufacturing enterprises the situation is often revealed when in RAS assets are fully depreciated, but continue to be used, and their number is significant. Since the company benefits from the operation of the asset, it is desirable for the purposes of IFRS to change the useful lives of the assets.

Adjustment for objects, the cost of which is less than the limit established in the RBSU for accounting for fixed assets [in the general case - up to 40 thousand rubles. inclusive (clause 5 PBU 6/01)], in practice it is carried out if it is material. These objects in RAS are written off when they are put into operation as expenses of the current period, in IFRS they are included in fixed assets. In IFRS there is no cost criterion for classifying assets as fixed assets, but in the accounting policies of a number of Western companies such a criterion exists. When preparing reports, it is necessary to strike a balance between the costs of this preparation and the usefulness of the information.

For reference

An adjustment is a change in the amount of lines in the statement of financial position and statement of comprehensive income with a change in the financial result of the current period.

Types of adjustments

Reclassification (reclassification) does not affect the profit or loss of the reporting period - accordingly, it simultaneously affects only IFRS balance sheet accounts or only IFRS profit / loss accounts.

Reclassifications arise as a result of differences in the recognition of the elements of financial statements under RAS and IFRS, they transfer the same amount from the line item under RAS to the line item under IFRS. Examples of reclassifications are:

• reclassification of advances issued against, from receivables and other non-current assets according to RAS to construction in progress according to IFRS (to fixed assets);
• reclassification of investment property from fixed assets to investment property;
• reclassification of deposits and highly liquid investments with a maturity of less than three months to cash and cash equivalents;
• reclass general operating expenses from the composition of the cost price to the composition of administrative expenses.

Correction (amendment) affects the net profit of the period and capital items - accordingly, it simultaneously affects both balance sheet accounts, and profit / loss accounts, and capital accounts.

Examples of adjustments (amendments) are:

• registration of objects received under a lease agreement;
• write-off of intangible assets that do not meet the recognition criteria of IAS 38;
• accrual of impairment loss for property, plant and equipment and construction in progress in accordance with IFRS;
• exclusion of general business expenses from the balances of work in progress and their transfer to the accounts of administrative expenses.

Step 5. Perform transformational and consolidation adjustments.

When generating an incoming (opening) statement of financial position in accordance with IFRS as of the date of transition, the following adjustments must be made:

• recognize all assets and liabilities that are subject to recognition in accordance with IFRS (for example, finance leases, liabilities to dismantle property, plant and equipment);
• exclude assets and liabilities that are not subject to recognition in accordance with IFRS;
• reclassify items of assets, liabilities and equity in the balance sheet in accordance with the requirements of IFRS;
• to assess all assets and liabilities in accordance with IFRS - to analyze how assets and liabilities meet the criteria for recognizing assets and liabilities in IFRS, whether their value is correctly formed (for example, it is necessary to devalue materials that are inactive for a long time, non-working equipment).

At each date, estimates should be applied based on the information available at that date. If in 2015 there were doubts about the likelihood of repayment of receivables, and in 2016 financial condition the debtor has improved, then when preparing reporting for 2015 it is necessary to devalue accounts receivable, in 2016 - to restore.

Step 6... Generate reporting in accordance with IFRS.

The composition of the first set of financial statements under IFRS is determined by the requirements of IFRS 1:

• three balance sheets (on the date of transition, the beginning of the reporting period, the end of the reporting period);
• two statements of comprehensive income (for example, 2016, 2015 as comparative information);
• two cash flow statements;
• two statements of changes in equity;
• notes, including comparative information, in accordance with all disclosure requirements.

IFRS 1 does not provide for exemptions from the presentation and disclosure requirements in other IFRSs.

In its first financial statements, the company explains how the transition from RAS to IFRS affected its financial position, financial results of operations and cash flows. It should reflect the explanation of the provisions of the transition to IFRS, as well as provide a reconciliation of items "Equity" and "Total comprehensive income". The reconciliation should include information that details the amounts of the adjustments under Equity and Profit. In the following periods, this reconciliation is not required.

To facilitate the process of preparing the first set of financial statements and minimize the number of errors, companies often hire consultants who are competent and experienced enough to help in the preparation of the first financial statements under IFRS.

Deputy Head of the Audit Department for international reporting AFK-Audit LLC.

When preparing financial statements in accordance with IFRS, the transformation of statements is most often used - the process of preparing financial statements in accordance with international standards by adjusting reporting items and regrouping accounting information prepared in accordance with RAS rules.

There is no single algorithm for transforming financial statements, and in each case, specialists use their own methodology that is optimal for the company.

More and more organizations in RAS apply IFRS standards, which is allowed by the requirements of clause 7 of PBU 1/2008 "Accounting policy of the organization". The transition to IFRS for such companies appears to be easier, since the number of transformational adjustments will be less.

REFERENCE
The Ministry of Finance of the Russian Federation on the official website on 08/01/2016 published a draft order that amends PBU 1/2008 "Accounting policy of the organization":

“An organization that discloses the consolidated financial statements prepared in accordance with international financial reporting standards or the financial statements of an organization that does not create a group, has the right to be guided by federal accounting standards when forming an accounting policy, taking into account the requirements of international financial reporting standards. If the application of the accounting method established by the federal accounting standard leads to inconsistency of the accounting policy of the said organization with the requirements of international financial reporting standards, the organization has the right not to apply this method.

If on a specific issue in the federal accounting standards are not established methods of accounting, then the organization develops an appropriate method, based on international financial reporting standards. "

For first-time adopters of international standards, IFRS 1 “First-time adoption of IFRSs” is addressed, which is used for the first financial statements under IFRS, as well as for interim statements presented for the part of the period covered by the first financial statements under IFRS. In such reporting, the company accepts all IFRS standards and makes a clear and unconditional statement of compliance with IFRS.

In the event that a company decides that it will not apply any IFRS in its first financial statements, these financial statements will not be considered compliant with IFRS. This can be reporting based on IFRS principles, for example, for management purposes. It should be noted that even if a company has applied all international standards, but has not made a statement of compliance with IFRS, such reporting is also not IFRS reporting.

In practice, questions often arise about the need to apply IFRS 1 if the company previously provided information for the preparation of the parent company's consolidated financial statements, but did not issue individual IFRS statements. It is also possible that the company prepared IFRS statements for internal purposes, but did not present them to the owners or third-party users. In both of the above cases, the requirements of IFRS 1 should be followed when preparing the first set of financial statements.

It also often happens that the company previously prepared IFRS reporting, but then stopped for some time. In this case, one should proceed from an analysis of the costs of preparing financial statements: either issue financial statements as if the company did not allow a break, or reapply IFRS 1. When the standard is reapplied, the statements are prepared ignoring the effect of accounting policies applied in previous periods ...

When applying IFRS for the first time, it is important to understand what the transition date is and what period IFRS 1 recognizes as the first reporting period.

Rice. 1. Date of transition to IFRS

Algorithm for preparing the first financial statements under IFRS for 2016

Throughout the transition period, a unified accounting policy should be applied (in the example, the transition period is three years: 2014, 2015, 2016).

When preparing the first set of financial statements, certain steps need to be followed.

Step 1. All standards that are in effect on the first reporting date should be used. This means that if the transition date is 12/31/2014, and the reporting is prepared on 12/31/2016, then it is necessary to apply the standards that are in effect on 12/31/2016. At the same time, it is possible to use standards issued, but not yet effective, the early application of which is permitted at the first reporting date.

For example, IFRS 15 Revenue is effective from 01.01.2018, with early adoption permitted. It is advisable to prepare the first set of reports based on its requirements in order to avoid adjustments in the future, when the new standard becomes effective.

In practice, most companies apply new standards ahead of schedule (remember that not all new standards can be applied early).

Step 2. Determine the standards to be applied before the reporting date. For example, if the company had leasing in 2015, but not in 2016.

Step 3... Determine the exceptions to be applied.

The general requirement of IFRS is to apply the requirements of all applicable IFRSs at the reporting date retrospectively. IFRS 1 allows two types of exemptions from retrospective application:

• mandatory exceptions;
• voluntary exceptions.

REFERENCE
Mandatory exceptions are mandatory for all first-time adopters of IFRS. The essence of voluntary exclusions is the right to choose whether or not to apply these exclusions. They relate to the retrospective application of IFRS (that is, from the date of the transaction, as if the company had always applied IFRS).

Example of voluntary exemption: IFRS 1 allows a first-time adopter to measure an asset in the opening IFRS balance sheet using deemed cost for property, plant and equipment, investment property (using the cost model) and intangible assets (provided active market).

IFRS 1 requires an entity to use estimates for IFRS purposes that are consistent with the estimates adopted when national accounting standards were applied at that date. If there is objective evidence that these estimates were erroneous, estimates that differ from those used in RAS are used for IFRS purposes. An example is a change in the useful life of property, plant and equipment (in particular, when income is generated from the operation of fully depreciated equipment).

REFERENCE
Errors are omissions and misstatements in the financial statements that arise from the failure to use or misuse reliable information, including the consequences of inaccuracies in calculations, misstatements in the application of accounting policies, underestimation or misinterpretation of facts, and fraud.

Practical example
IFRS 1 allows you to change estimates in the transition period (in the example - from 01/01/2015 to 12/31/2016). Thus, it is possible to change the useful lives of fixed assets and the depreciation method. The accounting model for fixed assets, established in the accounting policy under IFRS, remains unchanged: at initial or at revalued cost [p. 29 IAS 16]. In practice, it is better to change the timing and method of depreciation at the transition date.

Step 4... Build (organize) the preparation process and make it optimal. This will require regulating a set of measures:

1. determine the perimeter of consolidation (when preparing consolidated financial statements, the composition and structure of ownership are analyzed, direct, effective shares of ownership and shares of non-controlling shareholders are determined);
2. develop an accounting policy in accordance with IFRS (each organization included in the established perimeter of consolidation when preparing consolidated statements must use a unified accounting policy in accordance with IFRS);
3. analyze assets and liabilities at the date of transition to IFRS with a view to their recognition for the purposes of IFRS;
4. develop a methodology for transformation (or conducting parallel or combined accounting) and consolidation (when drawing up consolidated reporting), data collection packages, transformation models; it is first necessary to analyze the scope of the company, determine the main differences in reporting items between RAS and IFRS, and form a list of major adjustments.

Practical example
During the transition to IFRS of industrial enterprises, a situation often emerges when assets in RAS are fully depreciated, but continue to be used, and their number is significant. Since the company benefits from the operation of the asset, it is desirable for the purposes of IFRS to change the useful lives of the assets.

Adjustment for objects, the cost of which is less than the limit established in the RBSU for accounting for fixed assets [in the general case - up to 40 thousand rubles. inclusive (clause 5 PBU 6/01)], in practice it is carried out if it is material. These objects in RAS are written off when they are put into operation as expenses of the current period, in IFRS they are included in fixed assets. In IFRS there is no cost criterion for classifying assets as fixed assets, but in the accounting policies of a number of Western companies such a criterion exists. When preparing reports, it is necessary to strike a balance between the costs of this preparation and the usefulness of the information.

REFERENCE
An adjustment is a change in the amount of lines in the statement of financial position and in the statement of comprehensive income with a change in the financial result of the current period.

Types of adjustments
Reclassification (reclassification) does not affect the profit or loss of the reporting period - accordingly, it simultaneously affects only IFRS balance sheet accounts or only IFRS profit / loss accounts.

Reclassifications arise as a result of differences in the recognition of the elements of financial statements under RAS and IFRS, they transfer the same amount from the line item under RAS to the line item under IFRS. Examples of reclassifications are:

• reclassification of advances issued for fixed assets from accounts receivable and other non-current assets according to RAS to construction in progress according to IFRS (to fixed assets);
• reclassification of investment property from fixed assets to investment property;
• reclassification of deposits and highly liquid investments with a maturity of less than three months to cash and cash equivalents;
• reclassification of general business expenses from prime cost to administrative expenses.

Correction (amendment) affects the net profit of the period and capital items - accordingly, it simultaneously affects both balance sheet accounts, and profit / loss accounts, and capital accounts.

Examples of adjustments (amendments) are:

• registration of objects received under a lease agreement;
• write-off of intangible assets that do not meet the recognition criteria of IAS 38;
• accrual of impairment loss for property, plant and equipment and construction in progress in accordance with IFRS;
• exclusion of general business expenses from the balances of work in progress and their transfer to the accounts of administrative expenses.

Step 5. Perform transformational and consolidation adjustments.

When generating an incoming (opening) statement of financial position in accordance with IFRS as of the date of transition, the following adjustments must be made:

• recognize all assets and liabilities that are subject to recognition in accordance with IFRS (for example, finance leases, liabilities to dismantle property, plant and equipment);
• exclude assets and liabilities that are not subject to recognition in accordance with IFRS;
• reclassify items of assets, liabilities and equity in the balance sheet in accordance with the requirements of IFRS;
• to assess all assets and liabilities in accordance with IFRS - to analyze how assets and liabilities meet the criteria for recognizing assets and liabilities in IFRS, whether their value is correctly formed (for example, it is necessary to devalue materials that are inactive for a long time, non-working equipment).

At each date, estimates should be applied based on the information available at that date. If in 2015 there were doubts about the likelihood of repayment of receivables, and in 2016 the financial condition of the debtor improved, then when preparing reports for 2015 it is necessary to devalue the receivables, in 2016 - to restore.

Step 6... Generate reporting in accordance with IFRS.

The composition of the first set of financial statements under IFRS is determined by the requirements of IFRS 1:

• three balance sheets (on the date of transition, the beginning of the reporting period, the end of the reporting period);
• two statements of comprehensive income (for example, 2016, 2015 as comparative information);
• two cash flow statements;
• two statements of changes in equity;
• notes, including comparative information, in accordance with all disclosure requirements.

IFRS 1 does not provide for exemptions from the presentation and disclosure requirements in other IFRSs.

In its first financial statements, the company explains how the transition from RAS to IFRS affected its financial position, financial results of operations and cash flows. It should reflect the explanation of the provisions of the transition to IFRS, as well as provide a reconciliation of items "Equity" and "Total comprehensive income". The reconciliation should include information that details the amounts of the adjustments under Equity and Profit. In the following periods, this reconciliation is not required.

To facilitate the process of preparing the first set of financial statements and minimize the number of errors, companies often hire consultants who are competent and experienced enough to help in the preparation of the first financial statements under IFRS.