News

IB Grant Thornton: First-time adoption of IFRS - Publication by Grant Thornton International

Example Consolidated Financial Statements, 31 December 2010

Introduction to the publication:

IFRSs are increasingly becoming a truly global accounting framework with many countries committed to adopting them in the next few years. For companies, the process of converting to IFRS and preparing their first IFRS financial statements will be challenging. First-time adopters should comply with IFRS 1 First-time Adoption of International Financial Reporting Standards (IFRS 1). The objective of this Standard is to ensure that first-time IFRS financial statements contain high quality information that can be prepared at a cost not exceeding the benefits. IFRS 1 also specifies a number of additional disclosures for first-time adopters that must be addressed in addition to the normal IFRS presentation and disclosure requirements.

The member firms within Grant Thornton International Ltd (Grant Thornton International) - one of the world's leading organisations of independently owned and managed accounting and consulting firms - have extensive expertise in the first-time application of IFRS. Grant Thornton International, through its IFRS team, develops general guidance that supports its member firms’ commitment to high quality and consistent application of IFRS and is therefore pleased to share these insights by publishing First-time adoption of IFRS - Example Consolidated Financial Statements 2010.

This publication reflects the collective experience of Grant Thornton International's IFRS team and member firm IFRS experts, and is intended to illustrate the 'look and feel' of the first IFRS financial statements and to provide a realistic example of their presentation. The form and content of IFRS financial statements will of course depend on the activities and transactions of the reporting entity in concern. Our objective in preparing the publication was to illustrate one possible approach to financial reporting by an entity engaging in transactions that are 'typical' across a range of non-specialist sectors. However, as with any example, this illustration cannot cover every possible type of transaction or implementation choice in IFRS 1 and cannot therefore be regarded as comprehensive. Management is responsible for the fair presentation of financial statements and therefore may find other approaches to be more appropriate in their specific circumstances.
The publication is based on the activities and results of First International plc and its subsidiaries (the Group) - a fictional manufacturing and retailing entity that prepares its first IFRS financial statements. It illustrates the adoption of IFRSs that are effective for the year ending 31 December 2010 with a date of transition of 1 January 2009. However, no account has been taken of any new developments published after 30 November 2010.

Using this publication

IFRS 1 provides first-time adopters with the choice of a number of possible exemptions from the normal requirements of IFRS. Only one possible combination of the choices available to a first-time adopter has been illustrated. Therefore, the publication does not show all the requirements in IFRS 1.

In some areas, alternative presentation and disclosure approaches are also illustrated in the Appendices. For further guidance on the Standards and Interpretations applied, reference should be made to IFRS sources which are listed throughout the document on the left hand side of each page.

This publication does not address any jurisdictional or regulatory requirements relating to areas such as management commentary, remuneration reporting or audit reporting. Most importantly, the use of this publication is not a substitute for the use of a comprehensive and up to date disclosure checklist to ensure completeness in IFRS financial statements.

Grant Thornton International Ltd
December 2010

For further information please contact:
Helmut Hetlinger, Managing Partner IB Grant Thornton Czech Republic
tel.: +420 296 152 111, e-mail: h.hetlinger@ib-gtpraha.cz  

IB Grant Thornton
Na Bojišti 18
CZ-120 00 Praha 2
T +420 296 152 111, +420 296 181 481
F +420 296 181 483, +420 296 181 484
E office@ib-gtpraha.cz  

Pekařská 7, CZ-602 00 Brno
T +420 543 425 711, F +420 543 425 777
E office@ib-gtbrno.cz

www.ib-grantthornton.com