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Integrate initial adoption

this is a lecture from open tuition to benefit from the lecture you should download the free lecture notes from open tuition dot-com but you're gonna go through and look at a very small accounting standard in an accounting standard the an entity that prepares its financial statements under IFRS will only ever use once ok it's the accounting standard the dick takes the rules about when you move from your local accounting rules over to your IFRS is and what you should do to prepare your very first sets of IFRS financial statements and no surprise it's governed by IFRS what ok because if you're going to adopt IFRS and surely it's the first IFRS that you should use to be able to go through and get guidance on how to convert from your local GAAP to your IFRS s so what you've got there is if you are preparing IFRS is for the very first time as your financial statements then you need to make a disclosure within the accounts that that is what you are doing so that the use of the accounts clearly know that you are no longer preparing them under the old rules that you previously did ok however when you are done preparing your IFRS financial statement to the first time there are three things that you need to go through and do first of all you need to go through the and look at your current year financial statements ok so you need to prepare this year's figures using the IFRS rule however you then have an issue there don't you with your comparatives so the comparatives if things need to be comparable don't think we need to have comparability is one of the enhancing qualitative characteristics so in order for comparability to add shew we need to make sure that not just this year but last year's financial statements are also prepared under IFRS so that will go through and mean that you need to go back to the start of the previous financial year and adjust your opening balances there to be under IFRS so effectively that there's three reporting periods isn't there that you need to adjust for this year's last year's and in order to get last year's opening balances you're gonna have to restate the previous use as well aren't we okay to ensure that everything if you like use other than that I RS so it's a really complex long-winded technical challenge isn't it it will take a lot to do but thankfully you only have to do it want because then once you got everything under IFRS you then just carry on under IFRS is in the following you again to aid comparability and also understand ability what you're going to have to do as well is with your current year profits you're going to have to go through there and do a reconciliation of your current year profit on the IFRS to what you...