Question

Icon International, a software company, incorporated on January 1, 2013 is planning to convert to IFRS. The company decided to present its first IFRS statements for the year ended December 31, 2015. What is the transition date of Icon International? A. December 31, 2015 B. January 1, 2015 C. January 1, 2013 D. December 31, 2013

Answer 1

Answer:

The correct transition date which Icon international will show is B) January 1, 2015.

Explanation:

Icon international which was incorporated on January 1, 2013, wants to convert to IFRS( International financial reporting standards ) , which provides a  similar international language for business affairs, which would help making company accounts comparable and understandable across the global boundaries.

The correct transition date would be the year starting date ( 1 January ) , as the year in which company starts adopting to IFRS standards and making IFRS statements , so here the January 1, 2015 would be the correct transition date.