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Adoption of International Financial Reporting Standards

First-time adoption of IFRS Standards

1.1 IFRS 1 First Time Adoption of IFRS

IFRS 1 sets out the procedures that an entity must follow when applying IFRS
Standards for the first time.

Key issues to consider include:

 the date of transition

 applying IFRS Standards

 reporting gains and losses.

1.2 The date of transition

The date of transition is the beginning of the earliest period for which an entity
presents full comparative information under IFRS Standards in its first financial
statements produced using IFRS Standards.

The entity must produce an opening statement of financial position in accordance
with IFRS Standards as at the date of transition.

Example 1

An entity produces its first set of published financial statements prepared in
accordance with IFRS Standards for the year ended 31 December 20X1.

The date of transition is 1 January 20X0 – the first day of the comparative
period.

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