IFRS 1: First Time Adoption of International Financial Reporting Standards

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.