Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 27

Which of the following does not accurately describe a requirement that a company must fulfill when adopting IFRS for the first time a.The company must prepare an opening IFRS balance sheet at the beginning of the year for which the company is preparing its first set of IFRS financial statements.
B)At the IFRS transition date, the company must select IFRS accounting policies based on those that will be in effect for the accounting period that will be covered by the first set of IFRS financial statements.
C)At the IFRS transition date, the company must derecognize assets and liabilities that were recognized under previous GAAP that are not allowed to be recognized under IFRS.
D)The company must provide a reconciliation of net income and stockholders' equity under previous GAAP to net income and stockholders' equity under IFRS in its first set of IFRS financial statements.