IFRS 1- First Time Adoption of International Financial Reporting Standards

IFRS 1, the First-time Adoption of International Financial Reporting Standards, is an International Financial Reporting Standard (IFRS) issued by the International Accounting Standards Board (IASB). It provides guidance on how to prepare and present financial statements for the first time when an entity adopts IFRS as its financial reporting framework.

IFRS 1 applies to entities that are preparing their financial statements for the first time in accordance with IFRS. It does not apply to entities that are required to apply IFRS for the first time as a result of a change in the applicable financial reporting framework.

IFRS 1 sets out the steps that an entity must follow in order to adopt IFRS as its financial reporting framework. These steps include:

  1. Identifying the date of transition to IFRS.
  2. Determining the opening IFRS balance sheet.
  3. Retrospective application of IFRS to the opening balance sheet.
  4. Disclosing the impact of adopting IFRS.

IFRS 1 also provides guidance on how to prepare and present the financial statements and related disclosures when an entity adopts IFRS for the first time. This includes guidance on how to present the opening IFRS balance sheet, how to prepare comparative financial statements, and how to disclose the impact of adopting IFRS.

If you have any questions about IFRS 1 or how to apply it, you may want to seek the advice of a professional with expertise in financial reporting.

What is IFRS 1 in accounting?


Overview. IFRS 1 First-time Adoption of International Financial Reporting Standards sets out the procedures that an entity must follow when it adopts IFRSs for the first time as the basis for preparing its general purpose financial statements.

What is the purpose of IFRS 1?


The objective of IFRS 1 is to make sure that a reporting entity that adopts IFRS as its financial reporting basis prepares financial statements that: are transparent for users and comparable over all the periods presented; provides a suitable starting point for reporting under IFRS

What does the first time adopter do if its Amortisation method and rates under previous GAAP are not acceptable under IFRS?

Adjustments required to move from previous GAAP to IFRSs at the time of first-time adoption. The entity should eliminate previous-GAAP assets and liabilities from the opening statement of financial position if they do not qualify for recognition under IFRSs.

What is the subject of IFRS 1?

IFRS 1 requires disclosures that explain how the transition from previous GAAP to IFRS Standards affected the entity’s reported financial position, financial performance and cash flows.