WORLD ACADEMY OF INFORMATICS AND MANAGEMENT SCIENCES
ISSN : 2278-1315
succeed but one must be ready to face the challenge and risk
Response: A First Time Adopter is an entity that presents its
to become a successful entrepreneur. He/she must always be
first IFRS financial statements. That is, the taxpayer shall
willing to share his/her experience (which is the best
prepare and present an opening IFRS statement of financial
mentorship) to prepare and strengthen then hands of other as
position at the date of transition to IFRS. This is the starting
well. If you are a successful entrepreneur, your goal must be
point for its accounting in accordance with IFRS.
to help someone succeed too, and if you are a young
entrepreneur, you don’t have to think you know all, sit under
Question:What do you mean by First IFRS Financial
those who have gone ahead, listen to them and learn also,
Statement?
because they did same to reach the level they are at.
Response: First IFRS Financial Statements is the first annual
financial statements in which an entity adopts IFRS by an
CONCLUSION
To conclude, I have this believe that though
explicit and unreserved statement of compliance with IFRS.
entrepreneurship has a lot of risk attached, it also takes
The first IFRS financial statements will include financial
strong spirited individuals like you and I who though can
statement of the current year, which is the first period
easily get discouraged but can also stand in the face of every
published entirely according to IFRS and comparatives which
challenge that they face to say I CAN MAKE IT
were originally published under previous GAAP, and have
THROUGH. When an entrepreneur thinks of failure, at the
been restated into IFRS.
same time, he/she also thinks of ways to cope with the
failure and sour out successfully. It is high time for us to
Question: How should first time adopter prepare their
have a positive mindset in confronting the challenges that
first financial state?
comes/faces the entrepreneurial world, be it an individual,
undergraduate or unemployed graduate (but believes in
Response: First Time Adopter must prepare an opening
his/her ability to succeed) women and those might want to
Statement of Financial Position according to IFRS as at the
vie into the field, and then shutting our ears to whatsoever
date of transition to IFRS. Date of transition to IFRS is the
confrontations and forces that faces us.
beginning of the earliest comparative period for which an
entity presents full comparative information under IFRS in the
first IFRS financial statements.
INTERVIEWS
INTERVIEW WITH: Justin Joseph Dawom SCILRM,
Question: What do you mean by Opening IFRS Statement
ACA, Managing Partner Panshak Concepts and Consults
of Financial Position?
Ltd, Jos, Plateau State, Nigeria
Response: Opening IFRS Statement of Financial Position is
Email: jdawom@yahoo.com
an entity’s statement of financial position at the date of
Phone: +2348101209170, and +2348022831746
transition to IFRSs. In Nigeria, the date of transition was
TAX IMPLICATION ON FIRST TIME ADOPTION
established by the provision in the National Road Map on
OF IFRS BY PRIVATE ORGANISATION
Adoption of IFRS. The opening IFRS statement of Financial
IFRS (International Financial Reporting Standards) is an
Position is prepared by full retrospective application of all
acceptable accounting standard used worldwide. One of the
IFRS extant (existing) at the first IFRS reporting date.
key advantage using IFRS is a global comparability of
financial reporting. The introduction of an international
Question: What do you mean by first IFRS reporting
accounting standard aims to harmonize the financial
date?
information companies present. The hope is that mandatory
International Financial Reporting Standard (IFRS) adoption
Response: First IFRS reporting date is the latest reporting
increases transparency and comparability in the preparation
date covered by the entity’s first financial statements.
and presentation of general purpose financial statement, thus
enabling the capital and credit markets to function more
Question: What areas you considered mostly affected
effectively. The standard change (from national GAAP to
during tax computation by a company or organization
IFRS) will have impact on tax, due to the different
who is applying IFRS for the first time?
principles used in reporting corporations, organizations or
companies’ financial activities. Changing from previous
Response: The following items have tax implication and
GAAP to IFRS is a major undertaking which has wide
affect the income tax of private organizations:
reaching implications for the company adopting IFRS.
IFRS 1- First Time Adoption of International Financial
Reporting Standards explains how the transition to IFRS
should be accounted for. Therefore, this interview
investigates the taxation effects of IFRS adoption, and
whether IFRS adoption around the globe is associated with
higher or lower level of tax impacts.
Question: Who is a first time adopter?
www.waims.co.in
Revenue
Under the previous GAAP, revenue was recognized only for
the sales that were made to third parties within the accounting
period. IAS 18 - Revenue and IFRS 14 - Revenue on contracts
from customers, allows recognition of future revenue to be
made in the current year. This is achieved by discounting the
future revenue receivable to the present value at the
organization’s cost of capital. This will increase revenue as
well as the organization’s income tax.
ENDEAVOR 2019 | WAIMS ACADMIC PRESS
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