Question

The transition date is the date:

(a) when a company no longer reports under its national standards.

(b) when the company issues its most recent financial statement under IFRS.

(c) three years prior to the reporting date.

(d) None of the above.

Short answer

The correct option is “d”.

Step-by-step solution

Explanation to correct option

The transition date is the starting of the earliest accounting period for which comparative IFRS information is introduced. In other words, it is the date at which beginning IFRS financial statements are presented.

It is the date prior to two years from reporting date, and one year prior to the beginning of the First IFRS reporting period.

Explanation of  incorrect options

Option a) Not reporting the financial statements as per the applicable national standard, has no effect on the transition date.

Option b) The most recent financial statements as per IFRS is the report date, not the transition date.

Option c) Date of transition is two years earlier than the reporting date, not two years.