IFRS 1 First-Time Adoption

IFRS 1 First-time Adoption of International Financial Reporting Standards

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MRV Consulting professionals have extensive experience with IAS (International Accounting Standards) and IFRS (International Financial Reporting Standards). Our professionals have performed numerous analyses for companies in various industries worldwide. We have conducted face-to-face meetings advising companies on adopting IFRS, including IFRS 1, IFRS 3, and IFRS 36.

IFRS 1 is applicable when an entity adopts IFRSs for the first time by an explicit and unreserved statement of compliance with IFRSs. Some IFRS 1 considerations are:

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Overall

• Identify key dates

• Identify differences between existing accounting policies and IFRS and determine IFRS policies.

• Determination of estimates under IFRS

• Elect and apply optional exemptions

• Apply mandatory exceptions

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Opening Balance Sheet

• When the respective criteria are met, recognize all assets and liabilities required under IFRS (internal development costs)

• Derecognize all assets and liabilities not permitted under IFRS (post-acquisition restructuring if the acquiree did not recognize a provision under IAS 37)

• Measure assets, liabilities, and equity (impairment of assets)

• Reclassify items (deferred tax items)

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Disclosures

• Identify areas where extensive disclosures will be required

• Reconciliation of equity and income as reported under previous GAAP to its equity and income under IFRSs

• Distinguish between policy changes, estimate changes, and error corrections

• Narrative discussion adjustments

• Asset impairment

• Deemed cost

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