According to IFRS 1, when first transitioning from US Generally Accepted Accounting Principles (GAAP) or any other comprehensive basis of accounting (OCBOA) to IFRS, financial statements must contain an explicit and unreserved statement of compliance with IFRS. In order to be in compliance with full IFRS or IFRS for SMEs financial statements must be comparative. The comparative statements must present three years of statements of financial position otherwise known to most of us as the balance sheet, two years of comprehensive income statements, two years of statements of changes in equity, and two years of statements of cash flows. These statements must be in accordance with IFRS or IFRS for SMEs. This means that any company that wishes to adopt IFRS or IFRS for SMEs in 2014 must being adopting the standards as of January 1, 2012.