IFRS 1. 2. (d) did not present financial statements for previous periods. 4. This IFRS applies when an entity first adopts IFRSs. It does not apply when. A restructured version of IFRS 1 was issued in November and applies if an entity's first IFRS Click to Download Deloitte's Guide to IFRS 1 (PDF k). 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 .
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IFRS 1 First-time Adoption of International Financial Reporting Standards ( September ). Subsidiary as a first-time adopter. The Committee received a. to the PDF files of the current year's consolidated IFRS® Standards (Part A of the IFRS 1 First-time Adoption of International Financial Reporting Standards. IFRS 1 requires an entity that is adopting IFRS Standards for the first time to prepare a complete set of financial statements covering its first IFRS reporting period.
Research Programme Open for comment documents Completed projects.
Better Communication in Financial Reporting. Meetings and events calendar. IFRS shop. Products and services. This section also provides high-level and non-technical summaries for the Standards. Standard name. Conceptual Framework for Financial Reporting. IFRS 16 Leases. IAS 2 Inventories. IAS 11 Construction Contracts. IAS 12 Income Taxes. IAS 17 Leases. IAS 18 Revenue. IAS 19 Employee Benefits.
IAS 23 Borrowing Costs. IAS 32 Financial Instruments: IAS 33 Earnings per Share. IAS 36 Impairment of Assets. IAS 38 Intangible Assets. IAS 39 Financial Instruments: Recognition and Measurement. IAS 40 Investment Property.
IAS 41 Agriculture.
A first-time adopter is an entity that, for the first time, makes an explicit and unreserved statement that its general purpose financial statements comply with IFRSs. An entity may be a first-time adopter if, in the preceding year, it prepared IFRS financial statements for internal management use, as long as those IFRS financial statements were not made available to owners or external parties such as investors or creditors. An entity can also be a first-time adopter if, in the preceding year, its financial statements: However, an entity is not a first-time adopter if, in the preceding year, its financial statements asserted:.
An entity that applied IFRSs in a previous reporting period, but whose most recent previous annual financial statements did not contain an explicit and unreserved statement of compliance with IFRSs can choose to:. Prepare at least and financial statements and the opening statement of financial position as of 1 January or beginning of the first period for which full comparative financial statements are presented, if earlier by applying the IFRSs effective at 31 December 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.
Conversely, the entity should recognise all assets and liabilities that are required to be recognised by IFRS even if they were never recognised under previous GAAP.
The general measurement principle — there are several significant exceptions noted below — is to apply effective IFRSs in measuring all recognised assets and liabilities. In preparing IFRS estimates at the date of transition to IFRSs retrospectively, the entity must use the inputs and assumptions that had been used to determine previous GAAP estimates as of that date after adjustments to reflect any differences in accounting policies. The entity is not permitted to use information that became available only after the previous GAAP estimates were made except to correct an error.
For many entities, new areas of disclosure will be added that were not requirements under the previous GAAP perhaps segment information, earnings per share, discontinuing operations, contingencies and fair values of all financial instruments and disclosures that had been required under previous GAAP will be broadened perhaps related party disclosures.
If a first-time adopter wants to disclose selected financial information for periods before the date of the opening IFRS statement of financial position, it is not required to conform that information to IFRS.
Conforming that earlier selected financial information to IFRSs is optional. If the entity elects to present the earlier selected financial information based on its previous GAAP rather than IFRS, it must prominently label that earlier information as not complying with IFRS and, further, it must disclose the nature of the main adjustments that would make that information comply with IFRS.
This latter disclosure is narrative and not necessarily quantified. If an entity is going to adopt IFRSs for the first time in its annual financial statements for the year ended 31 December , certain disclosure are required in its interim financial statements prior to the 31 December statements, but only if those interim financial statements purport to comply with IAS 34 Interim Financial Reporting.
Explanatory information and a reconciliation are required in the interim report that immediately precedes the first set of IFRS annual financial statements.
Prior to 1 January , there were three exceptions to the general principle of retrospective application. The five exceptions are: Appendix B].
A first-time adopter shall apply the derecognition requirements in IAS 39 prospectively for transactions occurring on or after 1 January However, the entity may apply the derecognition requirements retrospectively provided that the needed information was obtained at the time of initially accounting for those transactions. The general rule is that the entity shall not reflect in its opening IFRS statement of financial position a hedging relationship of a type that does not qualify for hedge accounting in accordance with IAS However, if an entity designated a net position as a hedged item in accordance with previous GAAP, it may designate an individual item within that net position as a hedged item in accordance with IFRS, provided that it does so no later than the date of transition to IFRSs.
IFRS 1. Entities using the full cost method may elect exemption from retrospective application of IFRSs for oil and gas assets. Entities electing this exemption will use the carrying amount under its old GAAP as the deemed cost of its oil and gas assets at the date of first-time adoption of IFRSs. There are some further optional exemptions to the general restatement and measurement principles set out above. The following exceptions are individually optional.
They relate to:. However, should it wish to do so, an entity can elect to restate all business combinations starting from a date it selects prior to the opening statement of financial position date. In all cases, the entity must make an initial IAS 36 impairment test of any remaining goodwill in the opening IFRS statement of financial position, after reclassifying, as appropriate, previous GAAP intangibles to goodwill.
The exemption for business combinations also applies to acquisitions of investments in associates, interests in joint ventures and interests in a joint operation when the operation constitutes a business.
Assets carried at cost e. Fair value becomes the 'deemed cost' going forward under the IFRS cost model.
Deemed cost is an amount used as a surrogate for cost or depreciated cost at a given date. If, before the date of its first IFRS statement of financial position, the entity had revalued any of these assets under its previous GAAP either to fair value or to a price-index-adjusted cost, that previous GAAP revalued amount at the date of the revaluation can become the deemed cost of the asset under IFRS.
If, before the date of its first IFRS statement of financial position, the entity had made a one-time revaluation of assets or liabilities to fair value because of a privatisation or initial public offering, and the revalued amount became deemed cost under the previous GAAP, that amount would continue to be deemed cost after the initial adoption of IFRS.
If the carrying amount of property, plant and equipment or intangible assets that are used in rate-regulated activities includes amounts under previous GAAP that do not qualify for capitalisation in accordance with IFRSs, a first-time adopter may elect to use the previous GAAP carrying amount of such items as deemed cost on the initial adoption of IFRSs. An entity may elect to recognise all cumulative actuarial gains and losses for all defined benefit plans at the opening IFRS statement of financial position date that is, reset any corridor recognised under previous GAAP to zero , even if it elects to use the IAS 19 corridor approach for actuarial gains and losses that arise after first-time adoption of IFRS.
If a first-time adopter uses this exemption, it shall apply it to all plans. IAS 19 is effective for annual reporting periods beginning on or after 1 January An entity may elect to recognise all translation adjustments arising on the translation of the financial statements of foreign entities in accumulated profits or losses at the opening IFRS statement of financial position date that is, reset the translation reserve included in equity under previous GAAP to zero.
If the entity elects this exemption, the gain or loss on subsequent disposal of the foreign entity will be adjusted only by those accumulated translation adjustments arising after the opening IFRS statement of financial position date.
In May , the IASB amended the standard to change the way the cost of an investment in the separate financial statements is measured on first-time adoption of IFRSs. The amendments to IFRS Assets and liabilities of subsidiaries, associates and joint ventures: If a subsidiary becomes a first-time adopter later than its parent, IFRS 1 permits a choice between two measurement bases in the subsidiary's separate financial statements.
In this case, a subsidiary should measure its assets and liabilities as either: A similar election is available to an associate or joint venture that becomes a first-time adopter later than an entity that has significant influence or joint control over it. If a parent becomes a first-time adopter later than its subsidiary, the parent should in its consolidated financial statements, measure the assets and liabilities of the subsidiary at the same carrying amount as in the separate financial statements of the subsidiary, after adjusting for consolidation adjustments and for the effects of the business combination in which the parent acquired the subsidiary.
The same approach applies in the case of associates and joint ventures. These words serve as exceptions.
Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line. The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.
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Search site. Toggle navigation. Navigation Standards. Navigation International Financial Reporting Standards. Quick Article Links. Click for more information. Click for more information Effective for annual periods beginning on or after 1 January 17 May Amended by Annual Improvements Cycle repeat application, borrowing costs.