Procedures to be used

Chapter 36 – First Time Adoption Page 471 4. The Marshbird Company is preparing financial statements to 30 June each year. It has decided to adopt IFRS and its first fully compliant financial statements will be for the year ending 30 June 20X9. According to IFRS1 First-time adoption of international financial reporting standards, which IFRSs should be used when preparing the opening IFRS statement of financial position and the comparative figures for the year ended 30 June 20X8? A Those IFRSs in existence at 30 June 20X7 B Those IFRSs in existence at 30 June 20X9 C For the opening IFRS statement of financial position, the IFRSs in existence at 30 June 20X7 and for the year ended 30 June 20X8, the IFRSs in existence at 30 June 20X8 D Those IFRSs in existence at 30 June 20X8 5. The Monkman Company has prepared the following: 20X5 Financial statements for the year ended 30 September 20X5, which comply with all IFRSs in existence at that date, except that where local GAAP has differing standards the local standards have been used. 20X6 Financial statements for the year ended 30 September 20X6, which comply with some, but not all, IFRSs in existence at that date. 20X7 Financial statements for the year ended 30 September 20X7, which comply with all IFRSs in existence at that date. It includes an explicit statement that it has applied all IFRSs. The comparatives are what was shown in the previous years financial statements. 20X8 Financial statements for the year ended 30 September 20X8 and the comparatives for the previous year which comply with all IFRSs in existence at 30 September 20X8. It includes an explicit statement that it has applied all IFRSs. According to IFRS1 First-time adoption of international financial reporting standards, statements for which year are considered to be Monkmans first IFRS financial statements? A 20X5 B 20X6 C 20X7 D 20X8 Chapter 37 – Solutions to Self Test Questions Page 473 Chapter 37 SOLUTIONS TO SELF TEST QUESTIONS Chapter 1 Question 1 - A Both statements are false. The Norwalk agreement was between IASB and the FASB, in which both parties pledged to use their best efforts to make their financial reporting standards compatible as soon as practically possible and coordinate their activities so that, once achieved, compatibility is maintained. Question 2 - A C The SAC and the IASCF are completely independent of the European Commission. Question 3 - C The correct answer is the Accounting Regulatory Committee ARC. Question 4 - A IFRIC is the correct answer. See the IASB Constitution para 36 for the complete role undertaken by IFRIC. Question 5 - A B IFRIC and SAC are the correct answers per the IASB Constitution para 33 and para 37. Question 6 - C EFRAG is the correct answer. The body responsible for endorsement is the ARC. Technical reviews are received from EFRAG, a group composed of accounting experts from the private sector, the accounting profession and national standard setters. Question 7 - B C Newly identified financial reporting issues not specifically addressed in IFRSs and Issues where unsatisfactory or conflicting interpretations have developed, or seem likely to develop are the correct answers. The IASC constitution para 36 provides guidance.