AASB 1 First-time Adoption of Australian Accounting Standards 2-5,4A-4B: Decide whether the entity is a first-time adopter and apply the Standard to its first annual statements under Australian Accounting Standards and to the interim reports inside that period; an entity that once applied the Standards and lapsed chooses between this Standard and full retrospective application

What does 2-5,4A-4B require?

An entity applies the Standard in the first annual statements in which it adopts Australian Accounting Standards through an explicit and unreserved compliance statement, and in each AASB 134 interim report covering part of that first annual period. Statements qualify as the first set where the most recent prior statements were prepared under national rules that are not fully consistent with the Standards or IFRSs, were consistent in substance but carried no explicit and unreserved compliance statement, claimed compliance with only some Standards, used national rules with a reconciliation, or were prepared for internal use or as a consolidation package only, or where no statements were presented at all. Changes in accounting policy by an entity that already applies the Standards fall under AASB 108 and the transitional rules of the individual Standards, not here. An entity that applied the Standards or IFRSs in an earlier period but whose latest annual statements lacked the compliance statement may either apply this Standard or apply the Standards retrospectively under AASB 108 as though it had never stopped; if it takes the second route it still gives the disclosures in paragraphs 23A and 23B.