Description

Scenario:

Required:

1. Select the country where an entity is domiciled and list the main differences between the local accounting requirements (local GAAP) and IFRS.

2. Prepare the statement of financial position and income statement (or equivalent of statement of comprehensive income, if applicable) according to the local GAAP for two accounting periods.

3. Translate the Statement of financial position and the Income statement (or equivalent of statement of comprehensive income, if applicable) into IFRS for the year 2. (I.e. the date of IFRS opening statement of financial position is the beginning of year 2. Use the “Translation Table”.

4. Prepare all financial statements required by IAS 1 Presentation of Financial Statements. (Notes to financial statements are not required).

5. Explain the impact of the first adoption of IFRS on the entity’s financial position and performance according to the requirements of IFRS 1.

6. Write a commentary describing the problems relating to the first time adoption of IFRS in the chosen country and on business entities in this country.