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There is this rule in IFRS 1 that I don’t get:
The entity should select accounting policies that comply with IFRS effective at the end of the first IFRS reporting period. These accounting policies are used in the opening IFRS statement of financial position and throughout all periods presented. The entity doesn’t apply different versions of IFRS effective at earlier dates.
What’s this whole thing of IFRS effective? What’s effective? And what’s this thing of “throughout all periods presented”
Thanks.
“IFRS effective” means those IFRS that existed at the reporting date
“throughout all periods presented” means not just this year but also last year with its comparative figures and also the previous year because closing inventory from 2 years ago is of course the opening inventory for last year
Ok?
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