Worldwide Entity adopts IFRS in 20X6 and includes one year of comparative financial data. In 20X4, a revised standard was released that went into effect beginning on or after 20X6. Which year's financial statements should adhere to the updated standard?

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When a company adopts a new or revised accounting standard under IFRS, it must apply the standard retrospectively to all periods presented in the financial statements unless the standard specifies otherwise. Since Worldwide Entity includes one year of comparative financial data, both the current year (20X6) and the comparative year (20X5) must adhere to the updated standard to ensure consistency and comparability of financial information.

Worldwide Entity Adopts IFRS in 20X6 and Includes One Year