The explicit and unreserved statement of compliance with IFRS

Learning objectives

• Identify the conditions under which a statement of compliance with IFRS Accounting Standards may be made.L1
• Explain why partial compliance precludes the statement.L1

Normative references

• IAS 1 §16An entity whose financial statements comply with IFRS Accounting Standards makes an explicit and unreserved statement of such compliance in the notes; financial statements may be described as complying only if they comply with all the applicable requirements.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• Orion SA's notes state that its financial statements comply with IFRS Accounting Standards "except for" a disclosure requirement that management chose not to apply in order to shorten the notes (case facts). IAS 1 permits this statement of compliance.L1