Accounting policy changes in the year of adoption (paras. BC97)

BC97 In Improvements to IFRSs issued in May 2010, the Board clarified unclear wording concerning how changes in accounting policies should be addressed by a first‑time adopter when those changes occur after the publication of the entity’s first interim financial report. The Board decided that a first‑time adopter is exempt from all the requirements of IAS 8 for the interim financial report it presents in accordance with IAS 34 for part of the period covered by its first IFRS financial statements and for its first IFRS financial statements. The Board concluded that to comply with IFRS 1’s requirement to explain its transition to IFRSs, an entity should be required to explain any changes in its accounting policies or the IFRS 1 exemptions it applied between its first IFRS interim financial report and its first IFRS financial statements. The Board decided that the most useful information it could require was updated reconciliations between previous GAAP and IFRSs.