IFRS 1-First-time Adoption of International Financial Reporting Standards (Summary)
Summary of 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 and the preceding year.
The entity uses the same accounting policies throughout all periods presented in its first IFRS financial statements. Those accounting policies must comply with each Standard effective at the end of its first IFRS reporting period.
IFRS 1 provides limited exemptions from the requirement to restate prior periods in specified areas in which the cost of complying with them would be likely to exceed the benefits to users of financial statements.
IFRS 1 also prohibits retrospective application of IFRS Standards in some areas, particularly when retrospective application would require judgements by management about past conditions after the outcome of a particular transaction is already known.
IFRS 1 requires disclosures that explain how the transition from previous GAAP to IFRS Standards affected the entityβs reported financial position, financial performance and cash flows.
Source:
- Phnom Penh HR
- ifrs . org/issued-standards/list-of-standards/ifrs-1-first-time-adoption-of-ifrs/