2.6 ENTITIES AFFECTED BY IFRS 1
2.6.1 Which Companies Must and Which May Not Use IFRS 1
An IFRS first-time adopter, i.e., presenting first IFRS financial statements, must use IFRS 1 in its first IFRS annual financial statements.44
IFRS 1 is a one-time standard. Entities that already report under IFRSs cannot invoke special treatment under this standard.45 Paragraph 2.16.11 following illustrates the situation of a company that had already migrated to IFRS in a foreign market and then later decides to file under IFRS with the SEC. This company is no longer an IFRS first-time adopter.
2.6.2 Consolidated versus Separate versus Entity's Financial Statements
IFRS 1 applies to both consolidated and entity's own financial statements. It also applies to separate financial statements of a parent, investor, or joint venturer, if presented.
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