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
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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 …

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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 …

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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);
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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 …

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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
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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 …

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