IFRS Standard: IFRS 1 First-time Adoption of International Financial Reporting Standards

The objective of IFRS 1 is to ensure that an entity’s first IFRS financial statements, and its interim financial reports for part of the period covered by those financial statements, contain high quality information that: (a) is transparent for users and comparable over all periods presented; (b) provides a suitable starting point for accounting in accordance with International Financial Reporting Standards (IFRSs); and (c) can be generated at a cost that does not exceed the benefits.

IFRS 1 Objective Scope

Objective

1 The objective of this IFRS is to ensure that an entity’s first IFRS financial statements, and its interim financial reports for part of the period covered by those financial statements, contain high quality information that:

  1. is transparent for users and comparable over all periods presented;
  2. provides a suitable starting point for accounting in accordance with International Financial Reporting Standards (IFRSs); and
  3. can be generated at a cost that does not exceed the benefits.

Scope

2 An entity shall apply this IFRS in:

  1. its first IFRS financial statements; and
  2. each interim financial report, if any, that it presents in accordance with IAS 34 Interim Financial Reporting for part of the period covered by its first IFRS financial
Read more

IFRS 1 Recognition and measurement

Opening IFRS statement of financial position

6 An entity shall prepare and present an opening IFRS statement of financial position at the date of transition to IFRSs. This is the starting point for its accounting in accordance with IFRSs.

Accounting policies

7 An entity shall use the same accounting policies in its opening IFRS statement of financial position and throughout all periods presented in its first IFRS financial statements. Those accounting policies shall comply with each IFRS effective at the end of its first IFRS reporting period, except as specified in paragraphs 13–19 and Appendices B–E.

8 An entity shall not apply different versions of IFRSs that were effective at earlier dates. An entity may apply a new … Read more

IFRS 1 Presentation and disclosure

20 This IFRS does not provide exemptions from the presentation and disclosure requirements in other IFRSs.

Comparative information

21 An entity’s first IFRS financial statements shall include at least three statements of financial position, two statements of profit or loss and other comprehensive income, two separate statements of profit or loss (if presented), two statements of cash flows and two statements of changes in equity and related notes, including comparative information for all statements presented.

Non-IFRS comparative information and historical summaries

22 Some entities present historical summaries of selected data for periods before the first period for which they present full comparative information in accordance with IFRSs. This IFRS does not require such summaries to comply with the … Read more

IFRS 1 Exceptions to the retrospective application of other IFRSs

Appendix B

This appendix is an integral part of the IFRS.

B1 An entity shall apply the following exceptions:

  1. derecognition of financial assets and financial liabilities (paragraphs B2 and B3);
  2. hedge accounting (paragraphs B4–B6);
  3. non-controlling interests (paragraph B7);
  4. classification and measurement of financial assets (paragraphs B8–B8C);
  5. impairment of financial assets (paragraphs B8D–B8G);
  6. embedded derivatives (paragraph B9);
  7. government loans (paragraphs B10–B12); and
  8. insurance contracts (paragraph B13).

Derecognition of financial assets and financial liabilities

B2 Except as permitted by paragraph B3, a first-time adopter shall apply the derecognition requirements in IFRS 9 prospectively for transactions occurring on or after the date of transition to IFRSs. For example, if a first-time adopter derecognised non-derivative financial assets or non-derivative financial liabilities in accordance … Read more

IFRS 1 Exemptions for business combinations

Appendix C

This appendix is an integral part of the IFRS. An entity shall apply the following requirements to business combinations that the entity recognised before the date of transition to IFRSs. This Appendix should only be applied to business combinations within the scope of IFRS 3 Business Combinations.

C1 A first-time adopter may elect not to apply IFRS 3 retrospectively to past business combinations (business combinations that occurred before the date of transition to IFRSs). However, if a first-time adopter restates any business combination to comply with IFRS 3, it shall restate all later business combinations and shall also apply IFRS 10 from that same date. For example, if a first-time adopter elects to restate a business combination … Read more

IFRS 1 Exemptions from other IFRSs

Appendix D

Exemptions from other IFRSs

This appendix is an integral part of the IFRS.

D1 An entity may elect to use one or more of the following exemptions:

  1. share-based payment transactions (paragraphs D2 and D3);
  2. [deleted]
  3. deemed cost (paragraphs D5–D8B);
  4. leases (paragraphs D9 and D9B–D9E);
  5. [deleted]
  6. cumulative translation differences (paragraphs D12 and D13);
  7. investments in subsidiaries, joint ventures and associates (paragraphs D14–D15A);
  8. assets and liabilities of subsidiaries, associates and joint ventures (paragraphs D16 and D17);
  9. compound financial instruments (paragraph D18);
  10. designation of previously recognised financial instruments (paragraphs D19–D19C);
  11. fair value measurement of financial assets or financial liabilities at initial recognition (paragraph D20);
  12. decommissioning liabilities included in the cost of property, plant and equipment (paragraphs D21 and D21A);
  13. financial
Read more

IFRS 1 Short-term exemptions from IFRSs

Appendix E

This appendix is an integral part of the IFRS.

Exemption from the requirement to restate comparative information for IFRS 9

E1 If an entity’s first IFRS reporting period begins before 1 January 2019 and the entity applies the completed version of IFRS 9 (issued in 2014), the comparative information in the entity’s first IFRS financial statements need not comply with IFRS 7 Financial Instruments: Disclosure or the completed version of IFRS 9 (issued in 2014), to the extent that the disclosures required by IFRS 7 relate to items within the scope of IFRS 9. For such entities, references to the ‘date of transition to IFRSs’ shall mean, in the case of IFRS 7 and IFRS 9 (2014) only, … Read more