This Presentation shows the requirement of companies need to fulfill while first time adapting IFRS

1. IFRS1: FIRST TIME
ADOPTATION OF IFRS
FURQAN JAVEED SYED
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2. 2
What is IFRS1
IFRS stands for International Financial Reporting Standards.
IFRS 1 sets out the procedure that an entity must follow when it adopts IFRS for
the first time as the basis for preparing its general-purpose financial statements.
If an entity is preparing its financial reports under an accounting framework
other than IFRS and decides to change to IFRS then it must comply with the
requirements stated in IFRS 1.

3. SCOPE OF IFRS1
• An entity that presents financial statements in accordance
with IFRS for the first time is a “first-time adopter”.
• Such first-time adopters should apply IFRS in preparing
their opening statements of financial position.
• An entity shall apply this IFRS in -
• Its first IFRS financial statements.
• Each interim financial report, if any, presented in
accordance with IAS 34 for the part by the covered by its
first IFRS financial statements.
• IFRS1 does not apply to entities already reporting under
IFRS.
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4. OBJECTIVES OF IFRS1
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IFRS1 aims to ensure that an
entities first financial
statements after adopting IFRS,
and interim statements for
partial periods under IFRS, will:
Be transparent and comparable
Provide a suitable starting point
for the entities accounting
under IFRS
Have benefits that exceed the
cost of preparation

5. RECOGNITION
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Recognize all assets and liabilities whose
recognition is required by IFRS.
Do not recognize items as assets or
liability when recognition is not
permitted under IFRS.
Reclassify items reorganized under
previous generally accepted accounting
principles (GAAP) as assets, liabilities or
equity components, wherever IFRS
requires reclassification.
Apply IFRS in measuring all recognized
assets and liabilities.

6. RECOGNITION AND
MEASUREMENT
OPENING IFRS STATEMENT OF FINANCIAL
POSITION
At the time of transition to IFRS, the first-
time adopters shall prepare and present an
opening IFRS statement of financial position
that is the opening balance sheet.
ACCOUNTING POLICIES FOR FIRST TIME
ADOPTERS
Paragraph 7 of text IFRS1 states that an
entities will use the same accounting policies
in its opening IFRS financial statements and
in all other statements as such:
• Opening IFRS balance sheet.
• Comparative Periods.
• Current Period.
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7. RETROSPECTIVE
APPLICATION OF
ALL IFRSs
IFRS1 requires full retrospective
application of all IFRS effective at
reporting date. There are however
two categories of exceptions:
• Optional exemptions
• Mandatory exceptions
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8. OPTINAL
EXCEPTIONS
• These are designed to provide
companies some relief in case
where retrospective application is
burdensome, costly, impractical
or nearly impossible. There are a
total of 15 optional exemptions.
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9. MANDATORY EXCEPTIONS
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The mandatory exceptions cover areas intractable prospective application
of IFRS requirement is considered inappropriate. The following exceptions
are mandatory, not optional
• Estimates
• Hedge fund accounting
• Derecognition of financial assets and liabilities
• Noncontrolling interests
• Classification and measurement of financial assets (IFRS 9)
• Embedded derivatives (IAS 39/IFRS 9)
• Impairment of financial assets
• Government loans

10. PRESENTATION AND
DISCLOSURE
1. COMPARATIVE INFORMATION
With respect to comparative information required, first time
adopters of IFRS financial statement must include:
• Three statements of financial position.
• Two statements of comprehensive income.
• Two separate income statements.
• Two statements of cash flows.
• Two statements of changes in equity and related notes
including comparative information.
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11. PRESENTATION
AND
DISCLOSURE
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2. Explanations to transition to IFRS
The required explanations are to be done using
series of reconciliations. The objective of this
reconciliation is to bring out the effect of
transition on convergence from previous GAAP
to IFRS on its financial position, financial
performance and cash flow
The reconciliation of equity reported under
Indian GAAP to its equity reported under the
following dates:
• The date of transition to IFRS.
• The most recent annual financial statements
under Indian GAAP.

12. DISCLOSURES
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Use of fair value as deemed cost: if an entity uses fair values in its opening IFRS balance sheet as
deemed calls for an item of property, plant and equipment, and investment property, or an
intangible asset, disclosure is required for each line item in the opening IFRS balance sheet of
aggregate of those fair values.
A first-time adopter should explain how transition to IFRS affects its financial position, financial
performance, and cash flow
The first time I adopter should present at least one year's worth of comparative information.

13. EXAMPLE
AAA Ltd has decided to adopt from the year 2019-20
First year of reporting: Commences on or after 1st April 2019
Date of Adoption: The first day of first reporting here that is April 1st, 2019
Date of reporting: last day of first reporting year that is 31st March 2020
Comparative year: 2018-19
Date of transition: the beginning of earliest period for which an entity
presents full comparative information that is 1st April 2018
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14. THANK YOU
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