IFRS 1 first-time adoption

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. Zeneon is a first-time adopter under IFRS 1. The most recent financial statements it presented under its previous GAAP were 31 December 2008. It has adopted IFRS for the first time and intends to present the first IFRS financial statements as at 31 December 2009. It plans to present one year`s comparative information for the year to 2009. The opening IFRS balance sheet should be prepared as of:

  2. Which one of the following is not a required adjustment in preparing an opening IFRS balance sheet?

  3. Which one of the following does not qualify for an exemption allowed by IFRS 1?

  4. Which one of the following does not qualify for mandatory exemption under IFRS 1 for the purposes of retrospective application?

  5. Under which one of the following circumstances would an entity`s current year`s financial statements not qualify as first IFRS financial statements?

  6. Which of the following is not an example of the correct recognition of a new asset or liability on moving to IFRS?

  7. Which of the following is not an example of the correct reclassification of an asset or liability on moving to IFRS?

  8. IFRS 1 requires disclosures that explain how the transition from previous GAAP to IFRS affected the entity`s reported financial position, financial performance, and cashflows. Which of the following is not required to be disclosed?

  9. Deemed cost can be used in the opening IFRS balance sheet and is defined as:

  10. If the entity`s previous GAAP had allowed accrual of liabilities for general reserves, restructurings, future operating losses, or major overhauls that do not meet the conditions for recognition as a provision under IAS 37 then the accounting treatment should be to: