The IASB noted that the scope of IFRS 1 focuses on whether an entity's financial statements are its 'first IFRS financial statements'.
The IASB decided that an entity that meets the criteria for applying IFRS 1 and that has applied IFRSs in a previous reporting period (regardless of whether it used IFRS 1 or SIC-8 First-Time Application of IASs, if either, when previously adopting) may choose to apply IFRS 1 when it re-adopts IFRSs.
An entity shall disclose the reason why it stopped applying IFRSs and the reason why it is resuming reporting in accordance with IFRSs. An entity that does not elect to apply IFRS 1 shall explain the reasons why it has elected to apply IFRSs as if it had never stopped applying IFRSs.