Merl Ltd. is going to adopt IFRS for the first set of financial statements as at 31 December 20X3. Which of the following exemptions can Merl Ltd. use?
A. Merl Ltd. is not required to disclose the comparative figures for 20X2.
B. Merl Ltd. does not need to remeasure the defined benefit obligation for two years.
C. There are no exemptions related to measurement, presentation and disclosure for employee benefits for an IFRS first-time adopter
For an entity adopting IFRS for the first time, like Merl Ltd. in this case, there are specific transition provisions available. However, according to IAS 1.137, a first-time IFRS adopter is not required to provide comparative information for the period preceding the comparative period. This means that option A, stating that Merl Ltd. is not required to disclose the comparative figures for 20X2, is the correct exemption.
A. Merl Ltd. is not required to disclose the comparative figures for 20X2.
