Question 6
While the original application date of the standard for an existing IFRS preparer was 1 January 2005, what is the effective date for entities that adopt IFRS subsequent to 1 January 2005?
1 January 2006
The date of transition to IFRS
The beginning of the interim period following the transition to IFRS
For entities that adopt IFRS subsequent to 1 January 2005, the effective date for applying the standards would typically be the date of transition to IFRS. This means that the entity would apply the standards from the beginning of the reporting period following their transition to IFRS. Therefore, the effective date in this case would be:
The date of transition to IFRS
This reflects the principle that new adopters of IFRS should apply the standards from the first reporting period after they have transitioned to International Financial Reporting Standards.
