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IFRS 1 First-time Adoption of IFRS

IFRS 1 First-time Adoption of International Financial Reporting Standards provides guidance for entities adopting IFRS for the first time.

Revised and restructured November 2008. Effective 1 July 2009.

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Contents

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Financial Reporting Faculty members only

*UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Find out more on which entities qualify and the criteria to be met.

Synopsis

  • IFRS 1 provides guidance for entities adopting IFRS for the first time.
  • The standard requires an entity in this position to comply with IFRSs effective at the end of its first IFRS accounting period in terms of the recognition and measurement of assets and liabilities.
  • There are limited exemptions from these requirements where the cost of compliance would outweigh the benefits.
  • Entities must disclose the effect of the transfer to IFRS on financial position, performance and cash flows.

Which version of the standard?

'Which version of the standard?' is only available to members of the Financial Reporting Faculty. Please note that to access electronic versions of IFRS through the links in these standard trackers you need to have first logged into eIFRS here.

Recent amendments

Full access to details of all the amendments is only available to Financial Reporting Faculty members. Find out how to join the faculty.

*Not EU endorsed as at 6 June 2017. Read more on EU Endorsement.

The following interpretation refers to IFRS 1

Current proposals

  1. Read ED/2017/1 Annual Improvements to IFRSs 2015-2017 cycle 
  2. ED/2017/3 Prepayment Features with Negative Compensation – Proposed amendments to IFRS 9 was issued in April 2017. A consequential proposed amendment to IFRS 1 would add to the exception to retrospective application on first-time adoption in respect of the classification and measurement of financial instruments to reflect the proposed amendments to IFRS 9.
  3. Read ED/2017/3 Prepayment Features with Negative Compensation – Proposed amendments to IFRS 9

UK reduced disclosures

UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Find out more on which entities qualify and the criteria to be met.

Amendments to the standard

Where an entity applies FRS 101, it is preparing Companies Act accounts rather than IAS accounts. Therefore the following amendments must be made to IFRS 1 in order to achieve compliance with the Companies Act and related Regulations:
It is clarified that a subsidiary which becomes a first-time adopter later than its parent or an entity that becomes a first-time adopter later than its subsidiary, associate or joint venture must ensure that its assets and liabilities are measured in compliance with FRS 101.

Disclosure exemptions

On first-time adoption of FRS 101, an entity is exempt from the IFRS 1 requirement to present an opening statement of financial position as at the date of transition.

Other resources

Factsheets:

This page was last updated 6 June 2017