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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. The standard was revised and restructured in November 2008 and is effective from 1 July 2009.

Full text standard

Unaccompanied version of IFRS 1
The International Accounting Standards Board (IASB) provides free access to the consolidated unaccompanied international accounting standards for the current year through its website. Free registration is required.

This unaccompanied version does not include additional content that accompanies the full standard, such as illustrative examples, implementation guidance and bases for conclusions.

IFRS 1 summary and timeline

Looking for the synopsis? Our IFRS 1 summary and timeline are now on a separate page, featuring information on current proposals and a timeline of IASB updates.

Which version of the standard?

Financial Reporting Faculty members have unlimited online access to the consolidated edition of IFRS and amendments through the IASB's eIFRS service. Please log into eIFRS to access electronic versions of the standards. Or find out more about how to join the faculty.

The ICAEW Library also offers members and students access to the print versions of the latest IFRS Blue and Red Books. Contact us by telephone on +44 (0)20 7920 8620, by web chat or by email at library@icaew.com


1. IFRS 9 amendment to IFRS 1

Effective for annual periods beginning on or after 1 January 2018. Earlier application is permitted.

IFRS 1 (2008) and IFRS 1 (2003) are amended by IFRS 9 to:

  • Delete reference to IAS 39 classifications of financial assets and instead refer to IFRS 9 classifications.
  • Add a new short-term exemption from the requirement to provide comparative information in accordance with IFRS 9.
  • Amend IFRS 1 concerning the derecognition of financial instruments, hedge accounting and the treatment of embedded derivatives on first-time adoption of IFRS.
  • Refer to IFRS 9 rather than IAS 39 in respect of hedge accounting
  • Add an exemption to designate certain existing contracts as measured at fair value through profit or loss on the date of transition to IFRS.
2. Accounting for Acquisitions of Interests in Joint Operations (amendments to IFRS 11)

To be applied to annual periods starting on or after 1 January 2016. Earlier application is permitted.

The amendments to IFRS 11 require that where an entity acquires an interest in a joint operation that constitutes a business, the principles in IFRS 3 related to business combinations should be applied.  A consequential amendment to IFRS 11 is made to extend the exemption for past business combinations to past acquisitions of interests in joint operations in which the activity of the joint operation constitutes a business.

3. IFRS 15 Revenue from Contracts with Customers amendments to IFRS 1

To be applied to annual periods starting on or after 1 January 2018 Earlier application is permitted.

As a result of the issue of IFRS 15 a consequential amendment to Appendix D of IFRS 1 allows an entity to apply the transition provisions of IFRS 15 on first time adoption of IFRS. In addition a first-time adopter is not required to restate contracts completed before the earliest period presented.

4. Equity Method in Separate Financial Statements (amendments to IAS 27)

Effective for annual periods beginning on or after 1 January 2016. Earlier application is permitted.
IAS 27 is amended to allow the measurement of subsidiaries, joint ventures and associates in the separate financial statements of an investor using the equity method. Consequential amendments are made to IFRS 1 to reflect this option and detail how a first time adopter should apply the equity method in separate financial statements.

5. IFRS 16 Leases amendment to IFRS 1

To be applied to periods beginning on or after 1 January 2019. Earlier adoption is permitted.

IFRS 1 is amended to allow use of fair value as deemed cost for a right-of-use asset on transition to IFRS. Further amendments are made to:

  • Require that a first time adopter refers to IFRS 16 guidance on transition in order to determine whether a contract is a lease
  • Provide guidance on the measurement of a lease liability  and right-of-use asset by a first time adopter.
6. Annual Improvements to IFRS 2014-2016

To be applied to annual periods beginning on or after 1 January 2018. Earlier application is permitted.

IFRS 1 is amended to delete certain short-term exemptions as those exemptions have served their intended purpose.

7. IFRIC 22 amendments to IFRS 1

To be applied to annual periods beginning on or after 1 January 2018. Earlier application is permitted.

IFRS 1 is amended to add foreign currency transactions and advance consideration to the list of exemptions available to first-time adopters.

8. IFRS 17 Insurance Contracts amendment to IFRS 1*

To be applied to periods beginning on or after 1 January 2021. Earlier adoption is permitted.

IFRS 1 is amended to:

(a) Remove the optional exemption to apply the transitional provisions of IFRS 4 on first-time adoption, and

(b) Add an exception to the retrospective adoption of IFRS 17 on first-time adoption, instead requiring the application of the transitional provisions of IFRS 4. 

* Not EU endorsed as at 26 November 2018. Read more on EU endorsement.

9. IFRIC 23 Uncertainty over Income Tax Treatments amendment to IFRS 1*

To be applied to periods beginning on or after 1 January 2019. Earlier adoption is permitted.

A short-term exemption is added to IFRS 1 to allow a first-time adopter whose date of transition is before 1 July 2017 to elect not to reflect the requirements of IFRIC 23 in its comparative information in its first IFRS financial statements.

* Not EU endorsed as at 26 November 2018. Read more on EU endorsement.

ICAEW guidance and commentary

Factsheets

IFRS Transition 🔒
Financial Reporting Faculty, 31 January 2017
This exclusive factsheet for Financial Reporting Faculty members is designed to assist those adopting, or considering adopting, International Financial Reporting Standards (IFRSs) for the first time. It considers the implications of moving to IFRSs and provides practical tips on how to manage the process.

Annual factsheets

These exclusive factsheets, produced annually by the Financial Reporting Faculty for its members, highlight all new and modified requirements for preparers of IFRS accounts. Each annual edition focuses primarily on new requirements with mandatory application for preparers with periods beginning on or after 1 January of that year.

2018 IFRS accounts 🔒
Financial Reporting Faculty, 6 August 2018

2017 IFRS accounts 🔒
Financial Reporting Faculty, 30 April 2018


eBooks

Access to eBooks is only available to ICAEW members and ACA students – please log in to view these titles.

IFRS 2018: Interpretation and application of IFRS standards 🔒
PKF (2018)
This Wiley guide has been fully updated to help practitioners apply and comply with the latest international financial reporting standards. It provides detailed guidance along with illustrative examples. The chapter on first-time adoption of international financial reporting standards covers:

If you have any difficulties using these eBooks, please see our Help and support advice or contact library@icaew.com.


Example accounts

IFRS checklists and model financial statements
Online disclosure checklists, general IFRS illustrative statements and compliance questionnaires collected by the ICAEW Library.

Best practice

Company Reporting (Croner-i)
The ICAEW Library can provide examples of real-life company reports to help keep you up-to-date with reporting practices and benchmark your financial reporting compliance. As well as extracts from reports filed by all major public companies, Company Reporting also offers weekly CR Monitor Reports detailing changes to reporting practice and a broader monthly CR Review.

Contact us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com to get any documents from Company Reporting.

ICAEW and Financial Reporting Faculty members can also buy a personal discounted subscription to this product.


Further reading

Manuals and handbooks

The ICAEW Library stocks the latest IFRS handbooks and manuals. You can browse all our books on IFRS 1 and first-time adoption of IFRS or request any of the following popular titles by contacting us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com

International Accounting/Financial Reporting Standards guide
David Alexander and Simon Archer, CCH, 2017
Handbook explaining the latest general and industry-specific international reporting standards (as published by the IASB at 1 September 2016), as well as proposed changes on the immediate horizon. The book features Practice Pointers throughout that describe in plain English how to apply the standards.
Request this book

Wiley IFRS 2017: Interpretation and application of IFRS standards
PKF, Wiley, 2017
Reference manual providing full coverage of the latest standards and thorough guidance for implementation, featuring practical tools and insight from a practitioner's perspective.
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International GAAP 2018
EY, Wiley, 2018
Comprehensive reference guide to interpreting and implementing IFRS, featuring detailed analysis of technical accounting issues accompanied by worked examples and illustrations taken from the actual financial statements of companies that report under IFRS. This manual deals with standards issued by the IASB up to September 2017.
Request this book

iGAAP 2018: A guide to IFRS reporting (Volume A)
Deloitte, Croner-i, 2018
Practical and comprehensive guidance for entities currently reporting under IFRS and those considering whether to move to IFRS in the near future. This manual deals with standards issued by the IASB as at 1 September 2017.
Request this book

GAAP 2018: UK reporting - IFRSs (Volume C)
Deloitte, Croner-i, 2018
Comprehensive manual explaining how to apply IFRS, focusing on practical implementation issues with commentary and analysis of issues specific to UK companies. This volume deals with standards issued by the IASB as at 1 September 2017.
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Insights into IFRS
KPMG, Thomson Reuters, 2017
Manual providing practical guidance with an emphasis on the real-life application of IFRS, with examples based on actual questions that have arisen in practice around the world. This book deals with standards issued by the IASB as at 1 August 2017.
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Manual of accounting: IFRS for the UK 2017
PwC, Lexis Nexis, 2016
Practical guidance on the standards and the accounting requirements of UK law applicable to UK users of IFRS. This manual deals with standards published by the IASB as at 31 December 2015.
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Articles

The ICAEW Library subscribes to over 250 current journals and magazines, as well as offering access to 3,000 key UK and international business, management and trade titles online. You can browse articles on IFRS 1 and first-time adoption of IFRS or request any of the selected articles below by contacting us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com

The impact of IFRS adoption: UK and Ireland
Company Reporting, July 2006
This article analyses the transition to the new accounting standards from 1 January 2005, as accounted for in accordance with IFRS 1. Second in a series studying the transition, with separate articles available for Mittel-Europa, Mediterranean and Nordic countries.  

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Ask ICAEW Technical Advisory Service

Get an opinion from the experts. Our experienced technical advisors can help you with your IFRS questions and offer practical advice. Call the advisory helpline on +44 (0)1908 248 250. 

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