(12)Companies that prepare for the first time their financial statements in accordance with international financial reporting standards (IFRS) and apply IAS 39 in the version annexed to this Regulation should be considered as ‘first time adopters’ within the meaning of IFRS 1, as adopted by Regulation (EC) No 707/2004 and the present Regulation. The purpose of IFRS 1 is that costs for the transition towards full IAS/IFRS should not outweigh the benefits for the users of financial statements. This reasoning continues to apply in the case of moving towards full application of endorsed IAS. Accordingly, references in IFRS 1 to IAS/IFRS, which was adopted by Regulation (EC) No 707/2004, should be construed as references to IAS/IFRS as adopted on the basis of Regulation (EC) No 1606/2002.