Does IFRS 1 require retrospective application for first-time adoption?
An entity moving for the first time from U.S. GAAP to IFRS should, as a basic requirement, make full retrospective application of all IFRS effective at the reporting date for an entity’s first IFRS financial statements (although many exemptions and four exceptions exist). The IASB exempts standards for which retrospective application would be too difficult and for those that fail a cost/benefit analysis.
