2.3 RATIONALE OF IFRS 1
2.3.1 First-Time Adoption of a Comprehensive Basis of Accounting
Essentially, IFRS 1 treats the first-time adoption of a comprehensive basis of accounting with reference to IFRSs. It is a change in accounting basis rather than an accounting change.2
2.3.2 Derogation from the Basic Principle of Retrospective Application
Retrospective accounting for an involuntary change in accounting principles (i.e., mandated by authoritative pronouncements) is a general rule under both U.S. GAAP and IFRSs.
Get The Handbook to IFRS Transition and to IFRS U.S. GAAP Dual Reporting now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.