Incoming balances in the balance sheet according to IFRS
30.4. All assets and liabilities that meet the recognition criteria under IFRS are recognized (for example, assets used under finance leases and lease obligations).
Assets and liabilities that do not meet the recognition criteria under IFRS should not be recognized (for example, reserves that do not meet the definition of obligation).
All recognized assets and liabilities must be measured in accordance with IFRS (ie at cost, fair value or at a discounted amount).
Some exceptions to IFRS requirements
30.5. IFRS 1 requires the retrospective application of all standards in force at the date of the preparation of financial statements under IFRS for the first time, with some exceptions:
• for fixed assets (as well as investment property and intangible assets);
• for business combinations;
• for employee benefits;
• for the cumulative difference from translating reporting from one currency to another;
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• for complex financial instruments;
• for assets and liabilities of subsidiaries and associates, as well as joint ventures.
30.6. A company that applies IFRS for the first time can use any of the allowed exceptions.
Valuation of some objects at their original cost may require unreasonably high costs or effort, especially if the company has not updated the fixed asset registers for a long time. In this regard, the items of property, plant and equipment can be measured at fair value at the date of transition, which in this case is the estimated cost.
If a company revalues assets in accordance with previously applied national accounting rules and the result of revaluation is generally consistent with IFRS, it can be used as an estimated cost.
These rules also apply to investment property that is accounted for at historical cost in accordance with the appropriate model provided for in IAS 40 and intangible assets that meet the criteria for recognizing and reassessing IAS 38.
30.7. A company applying IFRS for the first time is not required to apply IFRS 22 & quot; Business Combinations & quot; (or IFRS 3) for the consolidations that occurred before the date of transition to IFRSs. However, if a company applying IFRS for the first time recalculates any of the previously existing entities in accordance with IAS 22 or IFRS 3, all subsequent mergers must also be recalculated.
Classification as an acquisition, a reverse acquisition or a merger in previously reported financial statements according to national accounting rules remains unchanged. All assets acquired and liabilities assumed are recognized at the date of transition, except for certain financial assets and financial liabilities.
An intangible asset that does not meet the recognition criteria established by IAS 38 is reclassified (together with related deferred taxes and minority interest) as goodwill if, of course, under the previously applied goodwill accounting rules, was written off to the equity account - in this case, goodwill will not figure among the incoming balance balances.
All other changes apply to retained earnings.
The estimated cost of goodwill is the difference between:
• The parent's interest in the adjusted carrying amount and
• the cost of investments in the subsidiary in accordance with the individual financial statements of the parent company (as of the date of transition).
If the subsidiary's reporting has not previously been included in the consolidated statements, the carrying amount of its assets and liabilities is adjusted to reflect the amounts for which these assets and liabilities would have been included in the individual reporting of the subsidiary under IFRS.
The assessment of deferred tax and minority interest is derived from the measurement of other assets and liabilities. All adjustments to recognized assets and liabilities affect the minority interest and deferred tax.
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