IFRS Essentials

IFRS 1 FIRST-TIME ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS

1. INTRODUCTION AND SCOPE

IFRS 1 contains rules relating to the first-time adoption of IFRSs. IFRS 1 has to be applied in an entity's first annual financial statements according to IFRSs as well as in interim financial reports (prepared in accordance with IAS 34) that are presented for part of the period covered by the entity's first annual financial statements according to IFRSs (IFRS 1.2).

The first IFRS financial statements are the first annual financial statements in which an entity adopts IFRS through an explicit and unreserved statement that the financial statements comply with IFRSs (i.e. with all standards (IASs and IFRSs) and interpretations of the SIC and IFRIC) (statement of compliance).1 An entity that presents its first IFRS financial statements is referred to as a first-time adopter. A first-time adopter has to apply IFRS 1 (IFRS 1.2–1.3, IFRS 1.Appendix A, and IAS 1.16).

Financial statements in accordance with IFRSs are the entity's first IFRS financial statements if, for example, the entity (IFRS 1.3):

• presented its most recent previous financial statements;
  • in conformity with national requirements that are not consistent with IFRSs in all respects,
  • in accordance with IFRSs in all respects, except that the financial statements did not contain an explicit and unreserved statement of compliance, or
  • in conformity with national requirements, with a reconciliation of some amounts to the amounts ...