BC4 The IFRS applies to an entity that presents its first IFRS financial statements (a first‑time adopter). Some suggested that an entity should not be regarded as a first‑time adopter if its previous financial statements contained an explicit statement of compliance with IFRSs, except for specified (and explicit) departures. They argued that an explicit statement of compliance establishes that an entity regards IFRSs as its basis of accounting, even if the entity does not comply with every requirement of every IFRS. Some regarded this argument as especially strong if an entity previously complied with all recognition and measurement requirements of IFRSs, but did not give some required disclosures - for example, segmental disclosures that IAS 14 Segment Reporting [In 2006 IAS 14 was replaced by IFRS 8 Operating Segments.] requires or the explicit statement of compliance with IFRSs that IAS 1 Presentation of Financial Statements [In April 2024 the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements and carried over the requirements about fair presentation and compliance with IFRSs in IAS 1 Presentation of Financial Statements to IAS 8 Basis of Preparation of Financial Statements.] requires.