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TOA 2-15 2015 PFRS 1

THEORY OF ACCOUNTS C. GONZAGA

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PFRS 1 FIRST-TIME ADOPTION OF IFRS

Effectivity date: November 2008

IFRS 1 First-time Adoption of International Financial Reporting Standards sets out the procedures that an entity must follow
when it adopts IFRSs for the first time as the basis for preparing its general purpose financial statements. The IFRS grants
limited exemptions from the general requirement to comply with each IFRS effective at the end of its first IFRS reporting
period.

A restructured version of IFRS 1 was issued in November 2008 and applies if an entity's first IFRS financial statements are
for a period beginning on or after 1 July 2009.

Objective
IFRS 1 First-time Adoption of International Financial Reporting Standards sets out the procedures that an entity must follow
when it adopts IFRSs for the first time as the basis for preparing its general purpose financial statements.

Definition of first-time adoption

A first-time adopter is an entity that, for the first time, makes an explicit and unreserved statement that its general
purpose financial statements comply with IFRSs. [IFRS 1.3] An entity may be a first-time adopter if, in the preceding
year, it prepared IFRS financial statements for internal management use, as long as those IFRS financial statements were
not made available to owners or external parties such as investors or creditors. If a set of IFRS financial statements was,
for any reason, made available to owners or external parties in the preceding year, then the entity will already be considered
to be on IFRSs, and IFRS 1 does not apply. [IFRS 1.3] An entity can also be a first-time adopter if, in the preceding year,
its financial statements: [IFRS 1.3]
o asserted compliance with some but not all IFRSs, or
o included only a reconciliation of selected figures from previous GAAP to IFRSs. (Previous GAAP means the
GAAP that an entity followed immediately before adopting to IFRSs.)

However, an entity is not a first-time adopter if, in the preceding year, its financial statements asserted:
o Compliance with IFRSs even if the auditor's report contained a qualification with respect to conformity with IFRSs.
o Compliance with both previous GAAP and IFRSs.

GENERAL REQUIREMENTS

Select IFRS accounting policies using either:

IFRSs that are currently effective; or
One or more IFRSs that are not yet effective, if those new IFRS permit early adoption.
Recognize/derecognize assets and liabilities where necessary so as to comply with IFRSs
Reclassify items that the entity recognized under previous accounting framework as one type of asset, liability or
component of equity, but are a different type of asset, liability or component of equity under IFRS
Re-measure all assets and liabilities recognized under IFRSs.

OPENING IFRS STATEMENT OF FINANCIAL POSITION

An opening IFRS Statement of Financial Position is prepared at the date of transition

All IFRSs are applied consistently across all reporting periods in the entitys first set of IFRS compliant financial
statements (i.e. both the comparatives and the current reporting period)
If a standard is not yet mandatory but permits early application, an entity is permitted, but not required, to apply
that Standard in its first IFRS set of financial statements.

ACCOUNTING POLICIES

Use the same accounting policies in the opening IFRS statement of financial position and throughout all periods
presented in the first IFRS financial statements
Those accounting policies have to comply with each IFRS effective at the end of the first IFRS reporting period.

Changes in accounting policies during first year of IFRS

If, between the date of an entitys interim financial report (prepared in accordance with IAS 34 Interim Financial
Reporting) and the issue of its first annual IFRS financial statements, and entity changes accounting policies and/or
adopts exemptions:
The requirements of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors do not apply
The reconciliation between IFRSs and previous GAAP has to be updated.
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MANDATORY EXCEPTIONS

IFRS 1 prohibits retrospective application in relation to the following:

Estimates
Derecognition of financial assets and financial liabilities
Hedge accounting
Non-controlling interests.

PRESENTATION AND DISCLOSURE

An entitys first set of financial statements are required to present at least three statements of financial position and
two statements each of statements of comprehensive income, income statements (if presented), statements of cash
flows and statements of changes in equity, related notes and in relation to the adoption of IFRSs, the following:
A reconciliation of equity reported under previous accounting framework to equity under IFRSs:
At the date of transition to IFRSs
At the end of the latest period presented in the entitys most recent annual financial statements under
previous accounting framework.
A reconciliation of total comprehensive income reported under previous accounting framework to total
comprehensive income under IFRSs for the entitys most recent annual financial statements under previous accounting
framework
Interim financial reports:
In addition to the reconciliations above, the entity is also required to provide:
o A reconciliation of equity reported under its previous accounting framework to equity under IFRSs at
the end of the comparable interim period, and
o A reconciliation of total comprehensive income reported under its previous accounting framework to
total comprehensive income under IFRSs for the comparative interim period, and
o Explanations of the transition from its previous accounting framework to IFRS.
Any errors made under the previous accounting framework must be separately distinguished
Additional disclosure requirements are set out in IFRS 1.

ADDENDUM TO TOA 2-14 IASB-PFRSC -001

LIST OF IFRS/IAS/ IFRIC/SIC (as of January 1, 2015) Date Page

IFRS 1 First-time Adoption of International Financial Reporting Standards 1 July 2009

IFRS 2 Share-based Payment 1 January 2005
IFRS 3 Business Combinations 1 July 2009
IFRS 4 Insurance Contracts 1 January 2005
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations 1 January 2005
IFRS 6 Exploration for and Evaluation of Mineral Resources 1 January 2006
IFRS 7 Financial Instruments - Disclosures 1 January 2007
IFRS 8 Operating Segments 1 January 2009
IFRS 9 Financial Instruments 1 January 2015
IFRS 10 Consolidated Financial Statements 1 January 2013
IFRS 11 Joint Arrangements 1 January 2013
IFRS 12 Disclosure of Interests in Other Entities 1 January 2013
IFRS 13 Fair Value Measurement 1 January 2013
IFRS 14 Regulatory Deferral Accounts 1 January 2016
IFRS 15 Revenue from Contracts with Customers 1 January 2017
IFRS 16 Leases 1 January 2019

IAS 1 Presentation of Financial Statements 1 January 2005

IAS 2 Inventories 1 January 2005
IAS 7 Statement of Cash Flows 1 January 1994
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors 1 January 2005
IAS 10 Events After the Reporting Period 1 January 2005
IAS 11 Construction Contracts 1 January 1995
IAS 12 Income Taxes 1 January 1998
IAS 16 Property, Plant and Equipment 1 January 2005
IAS 17 Leases 1 January 2005
IAS 18 Revenue 1 January 1995
IAS 19 Employee Benefits 1 January 2013
IAS 20 Accounting for Government Grants and Disclosure of Government Assistance 1 January 1984
IAS 21 The Effects of Changes in Foreign Exchange Rates 1 January 2005
IAS 23 Borrowing Costs 1 January 2009
IAS 24 Related Party Disclosures 1 January 2011
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IAS 26 Accounting and Reporting by Retirement Benefit Plans 1 January 1988

IAS 27 Separate Financial Statements 1 January 2013
IAS 28 Investments in Associates and Joint Ventures 1 January 2013
IAS 29 Financial Reporting in Hyperinflationary Economies 1 January 2007
IAS 32 Financial Instruments - Presentation 1 January 2005
IAS 33 Earnings per Share 1 January 2005
IAS 34 Interim Financial Reporting 1 January 1999e Effective Date Page
IAS 36 Impairment of Assets 1 January 2004
IAS 37 Provisions, Contingent Liabilities and Contingent Assets 1 January 1999
IAS 38 Intangible Assets 31 March 2004
IAS 39 Financial Instruments - Recognition and Measurement 1 January 2005
IAS 40 Investment Property 1 January 2005
IAS 41 Agriculture 1 January 2003
IFRICs
Interpretation Name Effective Date Page
IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities 1 September 2004
IFRIC 2 Members Shares in Co-operative Entities and Similar Instruments 1 January 2005
IFRIC 4 Determining whether an Arrangement contains a Lease 1 January 2006
IFRIC 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation
Funds 1 January 2006
IFRIC 6 Liabilities arising from Participation in a Specific Market - Waste Electrical and Electronic
Equipment 1 December 2005
IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary
Economies 1 March 2006
IFRIC 9 Reassessment of Embedded Derivative 1 June 2006
IFRIC 10 Interim Financial Reporting and Impairment 1 November 2006
IFRIC 12 Service Concession Arrangements 1 January 2008
IFRIC 13 Customer Loyalty Programmes 1 July 2008
IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their
Interaction 1 January 2008
IFRIC 15 Agreements for the Construction of Real Estate 1 January 2009
IFRIC 16 Hedges of a Net Investment in a Foreign Operation 1 October 2008
IFRIC 17 Distribution of Non-Cash Assets to Owners 1 July 2009
IFRIC 18 Transfers of Assets from Customers 1 July 2009
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments 1 July 2010
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine 1 January 2013
IFRIC 21 Levies 1 July 2014

SIC-7 Introduction of the Euro 1 June 1998

SIC-10 Government Assistance - No Specific Relation to Operating Activities 1 January 1998
SIC-15 Operating Leases - Incentives 1 January 1999
SIC-25 Income Taxes - Changes in the Tax Status of an Entity or its Shareholders 15 July 2000
SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease 31 December 2001
SIC-29 Service Concession Arrangements - Disclosure 31 December 2001
SIC-31 Revenue - Barter Transactions Involving Advertising Services 31 December 2001
SIC-32 Intangible Assets - Website Costs 25 March 2002

Superseded Standards and Effective Date Page

SUPERSEDED STANDARDS AND INTERPRETATIONS
IAS 19 Employee Benefits 1 January 1995
IAS 27 Consolidated and Separate Financial Statements 1 July 2009
IAS 28 Investments in Associates 1 January 2007
IAS 31 Interests in Joint Ventures 1 January 2005
SIC-12 Consolidation: Special Purpose Entities 1 July 1999
SIC-13 Jointly Controlled Entities - Non-Monetary Contributions by Venturers 1 January 1999

TOA 2-15 2015 PFRS 1

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