143 0 obj <> endobj 172 0 obj <>/Filter/FlateDecode/ID[<58073967BEE7480883321A8628B845B0><5EEEA26FF1FC4741A44336946F736170>]/Index[143 49]/Info 142 0 R/Length 133/Prev 634683/Root 144 0 R/Size 192/Type/XRef/W[1 3 1]>>stream In this case, a subsidiary should measure its assets and liabilities as either: [IFRS 1.D16], A similar election is available to an associate or joint venture that becomes a first-time adopter later than an entity that has significant influence or joint control over it. IFRS 1 is full retrospective application of all IFRS standards in effect as of the closing balance sheet date (“reporting date”) to a company’s first IFRS financial statements. Accounting policies, accounting estimates and errors – IAS 8 9 6. A restructured version of IFRS 1 was issued in November 2008 and applies if an entity's first IFRS financial statements are for a period beginning on or after 1 July 2009. This guide does not illustrate the requirements of IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 4 Insurance Contracts, IFRS 6 Exploration for and Evaluation of Mineral Resources, IFRS 14 Regulatory Issue date. There are some further optional exemptions to the general restatement and measurement principles set out above. If the entity's previous GAAP had allowed treasury stock (an entity's own shares that it had purchased) to be reported as an asset, it would be reclassified as a component of equity under IFRS. ), reconciliations of total comprehensive income for the last annual period reported under the previous GAAP to total comprehensive income under IFRSs for the same period [IFRS 1.24(b)], explanation of material adjustments that were made, in adopting IFRSs for the first time, to the statement of financial position, statement of comprehensive income and statement of cash flows (the latter if presented under previous GAAP) [IFRS 1.25], if errors in previous GAAP financial statements were discovered in the course of transition to IFRSs, those must be separately disclosed [IFRS 1.26], if the entity recognised or reversed any impairment losses in preparing its opening IFRS statement of financial position, these must be disclosed [IFRS 1.24(c)], appropriate explanations if the entity has elected to apply any of the specific recognition and measurement exemptions permitted under IFRS 1 – for instance, if it used fair values as deemed cost, business combinations [IFRS 1.Appendix C]. both the comparatives and the current [IFRS 1.10(d)], Adjustments required to move from previous GAAP to IFRSs at the date of transition should be recognised directly in retained earnings or, if appropriate, another category of equity at the date of transition to IFRSs. IAS 37 requires recognition of provisions as liabilities. Explanatory information and a reconciliation are required in the interim report that immediately precedes the first set of IFRS annual financial statements. hyphenated at the specified hyphenation points. Compliance with IFRSs even if the auditor's report contained a qualification with respect to conformity with IFRSs. IFRS 1.20S 1 does not provide relief from the presentation and disclosure requirements in otherIFR S 1.D11IFR Ss; rather, except in respect of certain disclosures for defined post-employment benefit IFR plans (see note 29), IFRS 1 requires additional presentation and disclosures in the first IFRS … ��̽ �;,�"5w�HƧ`�f0l2���$�?���600�l��������� ��� endstream endobj startxref 0 %%EOF 191 0 obj <>stream If a 31 December 2014 adopter reports selected financial data (but not full financial statements) on an IFRS basis for periods prior to 2013, in addition to full financial statements for 2014 and 2013, that does not change the fact that its opening IFRS statement of financial position is as of 1 January 2013. [IFRS 1.14]. IFRS 1 requires disclosures that explain how the transition from previous GAAP to IFRS affected the entity's reported financial position, financial performance and cash flows. Prepare at least 2014 and 2013 financial statements and the opening statement of financial position (as of 1 January 2013 or beginning of the first period for which full comparative financial statements are presented, if earlier) by applying the IFRSs effective at 31 December 2014. It is a concise guide of the IASB’s standard-setting activities that has made this publication an annual, and indispensable, world-wide favourite. They relate to: Some, but not all, of them are described below. IFRS Standards are developed by the Board, which is the standard-setting body of the IFRS Foundation, an independent, private sector, not-for-profit organisation. apply the requirements of IFRS 1 (including the various permitted exemptions to full retrospective application), or, retrospectively apply IFRSs in accordance with, Since IAS 1 requires that at least one year of comparative prior period financial information be presented, the opening statement of financial position will be 1 January 2013 if not earlier. However, an entity is not a first-time adopter if, in the preceding year, its financial statements asserted: An entity that applied IFRSs in a previous reporting period, but whose most recent previous annual financial statements did not contain an explicit and unreserved statement of compliance with IFRSs can choose to: Select accounting policies based on IFRSs effective at 31 December 2014. Accounting principles and applicability of IFRS 3 3. Items classified as identifiable intangible assets in a business combination accounted for under the previous GAAP may be required to be reclassified as goodwill under, The reclassification principle would apply for the purpose of defining reportable segments under. The entity is not permitted to use information that became available only after the previous GAAP estimates were made except to correct an error. • Amendments to IAS 1,‘Presentation of financial statements’, Classification of liabilities. Japan is working to achieve convergence of IFRS and began permitting certain qualifying 5 IFRS 1 First-time Adoption of IFRSs Effective Date Periods beginning on or after 1 July 2009 MANDATORY RECOGNITION AND MEASUREMENT An opening IFRS Statement of Financial Position is prepared at the date of transition All IFRSs are applied consistently across all reporting periods in the entity’s first set of IFRS compliant financial statements (i.e. The main objective of IFRS 1 is to ensure that the entity’s financial statements that firstly adopted IFRS contain high quality of information for the benefit of users of Financial Statement. In November 2009, Deloitte's IFRS Global Office published a revised Guide to IFRS 1 First-time Adoption of International Financial Reporting Standards. The standard was revised and restructured in November 2008 and is effective from 1 July 2009. At its core is a comprehensive summary of the current Standards of International Financial Reporting Standards (IFRS) in this industry – reflecting the practices of many practitioners in the pharmaceuticals and life sciences industry. In May 2008, the IASB amended the standard to change the way the cost of an investment in the separate financial statements is measured on first-time adoption of IFRSs. Compliance with both previous GAAP and IFRSs. The entity should eliminate previous-GAAP assets and liabilities from the opening statement of financial position if they do not qualify for recognition under IFRSs. [IFRS 1.10(a)] For example: The entity should reclassify previous-GAAP opening statement of financial position items into the appropriate IFRS classification. IAS 1(r2007).19 In the extremely rare circumstances in which management concludes that compliance with a requirement in an IFRS [IFRS 1.D8B]. An entity applies IFRS 1 in: a. its first International Financial Reporting Standards financial statements; and b. each interim financial report, if any, that it presents in accordance with IAS 34 Interim Financial Reporting for part of the period covered by its first International … restating comparatives as if IFRS 16 had always been in force), or retrospective h�bbd```b``� " �H��"9߂�� ��Dr����L�!�A$W$��g In all cases, the entity must make an initial IAS 36 impairment test of any remaining goodwill in the opening IFRS statement of financial position, after reclassifying, as appropriate, previous GAAP intangibles to goodwill. Note: An entity that conducts rate-regulated activities and has recognised amounts in its previous GAAP financial statements that meet the definition of 'regulatory deferral account balances' (sometimes referred to 'regulatory assets' and 'regulatory liabilities') can optionally apply IFRS 14 Regulatory Deferral Accounts in addition to IFRS 1. The five exceptions are: [IFRS 1.Appendix B], IAS 39 – Derecognition of financial instruments, A first-time adopter shall apply the derecognition requirements in IAS 39 prospectively for transactions occurring on or after 1 January 2004. Issue date. The IFRS grants limited exemptions from the general requirement to comply with each IFRS effective at the end of its first IFRS reporting period. [IFRS 1.D10]. We have updated the content to reflect the lessons learned from the first major wave of IFRS adoption in 2005, as well as for the changes to IFRS 1 since 2004. IFRS 1, FIRST-TIME ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS QUESTIONS AND ANSWERS On 19 June 2003, the Highest and best use refers to the use of a non-financial asset by market participants that would maximise the value of the asset or the group of assets and liabilities (e.g. IFRS 1 First-time Adoption of International Financial Reporting Standards provides guidance for entities adopting IFRS for the first time. Deferred tax assets and liabilities would be recognised in conformity with IAS 12. Click to Download Deloitte's Guide to IFRS 1 (PDF 435k) Summary of IFRS 1 Objective. The guide was first published in 2004 with the aim of providing first-time adopters with helpful insights for the application of IFRS 1. Section 7 discusses some of the practical implementation decisions faced by first-time adopters. The IFRS Interpretations Committee has previously considered a number of relevant issues … IFRS 1 First-time Adoption of International Financial Reporting Standards provides guidance for entities adopting IFRS for the first time. [IFRS 1.10(b)] For example: Recognition of some assets and liabilities not recognised under previous GAAP. Please click the links below to access individual 'IFRS at a Glance' pdf files per standard. IFRS 1 First-time Adoption of International Financial Reporting Standards The objective of this IFRS is to ensure that an entity’s first IFRS financial statements, and its interim financial reports for part of the period covered by those financial statements, contain high quality information that: This latter disclosure is narrative and not necessarily quantified. [IFRS 1.D13], IAS 27 – Investments in separate financial statements. It is designed to be used by preparers, users and auditors of IFRS financial statements. 1 January 2020 (‘forthcoming requirements’) has not been illustrated. In other words, a company’s first set of IFRS financial statements should present its [IFRS 1.3], An entity can also be a first-time adopter if, in the preceding year, its financial statements: [IFRS 1.3]. The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Note: Modified requirements apply when an entity applies IFRS 9 Financial Instruments (2013). Examples could include an entity's obligations for restructurings, onerous contracts, decommissioning, remediation, site restoration, warranties, guarantees, and litigation. This guide does not illustrate the requirements of IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 4 Insurance Contracts, IFRS 6 Exploration for and Evaluation of Mineral Resources, IFRS 14 Regulatory IAS 38 does not permit recognition of expenditure on any of the following as an intangible asset: start-up, pre-operating, and pre-opening costs, If the entity's previous GAAP had allowed accrual of liabilities for "general reserves", restructurings, future operating losses, or major overhauls that do not meet the conditions for recognition as a provision under IAS 37, these are eliminated in the opening IFRS statement of financial position, If the entity's previous GAAP had allowed recognition of contingent assets as defined in IAS 37.10, these are eliminated in the opening IFRS statement of financial position. These were not recognised under many local GAAPs. Business combinations that occurred before opening statement of financial position date. A guide to IFRS 1 First-time adoption 5 The approach taken in IFRS 1 is the “Opening IFRS Balance Sheet Approach”. The first milestone in the development of today’s standard was in July 2000 when the G4+1, which included the predecessor of the Board, the International Accounting Standards Committee (IASC), issued a discussion paper on the topic. 2014. Detailed editorial notes set out the history of major amendments, and prospective amendments not yet effective. However, if an entity designated a net position as a hedged item in accordance with previous GAAP, it may designate an individual item within that net position as a hedged item in accordance with IFRS, provided that it does so no later than the date of transition to IFRSs. IFRS 1 First-time Adoption of International Financial Reporting Standards sets out the procedures that an entity must follow when it adopts IFRSs for the first time as the basis for preparing its general purpose financial statements. All effective amendments issued since that date are reflected in the text of the standard. IFRS 1 includes Appendix C explaining how a first-time adopter should account for business combinations that occurred prior to transition to IFRS. Detailed editorial notes set out the history of major amendments, and prospective amendments not yet effective. [IFRS 1.B5]. Each word should be on a separate line. IFRS.1 Australia, New Zealand and Israel have essentially adopted IFRS as their national standards.2 Brazil started using IFRS in 2010. All effective amendments issued since that date are reflected in the text of the standard. Presentation of financial statements – IAS 1 6 5. On 23 July 2009, IFRS 1 was amended, effective 1 January 2010, to add two additional exceptions with the goal of further simplifying the transition to IFRSs for first-time adopters. Introduction 1 Accounting rules and principles 2 2. IAS 19 – Employee benefits: actuarial gains and losses, An entity may elect to recognise all cumulative actuarial gains and losses for all defined benefit plans at the opening IFRS statement of financial position date (that is, reset any corridor recognised under previous GAAP to zero), even if it elects to use the IAS 19 corridor approach for actuarial gains and losses that arise after first-time adoption of IFRS. IFRS 1 First-time Adoption of International Financial Reporting Standards sets out the procedures that an entity must follow when it adopts IFRS for the first time as the basis for preparing its general purpose financial statements. IFRS 1 First-time Adoption of International Financial Reporting Standards (2008) was originally issued in November 2008, effective from 1 July 2009. [IFRS 1.24(a)] (For an entity adopting IFRSs for the first time in its 31 December 2014 financial statements, the reconciliations would be as of 1 January 2013 and 31 December 2013. Entities electing this exemption will use the carrying amount under its old GAAP as the deemed cost of its oil and gas assets at the date of first-time adoption of IFRSs. The IFRS grants limited exemptions from the general requirement to comply with each IFRS effective at the end of its first IFRS reporting period. The effective date of IFRS 16 is for annual reporting periods beginning on or after 1 January 2019. IFRS 1 First-time Adoption of International Financial Reporting Standards sets out the procedures that an entity must follow when it adopts IFRSs for the first time as the basis for preparing its general purpose financial statements. The information includes reconciliations between IFRS and previous GAAP. IFRS 1 First-time Adoption of International Financial Reporting Standards. [IFRS 1.11], In preparing IFRS estimates at the date of transition to IFRSs retrospectively, the entity must use the inputs and assumptions that had been used to determine previous GAAP estimates as of that date (after adjustments to reflect any differences in accounting policies). [IFRS 1.D8], This option applies to intangible assets only if an active market exists. An entity may keep the original previous GAAP accounting, that is, not restate: However, should it wish to do so, an entity can elect to restate all business combinations starting from a date it selects prior to the opening statement of financial position date. 6GD Technical Summary. The exemption for business combinations also applies to acquisitions of investments in associates, interests in joint ventures and interests in a joint operation when the operation constitutes a business. The standard was revised and restructured in November 2008 and is effective from 1 July 2009. It also applies to entities under ‘repeated first-time application’. IFRS 1 First-time Adoption of International Financial Reporting Standards as issued at 1 January 2014. 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Measurement 2011 January 1, 2013 IFRS 14 Regulatory Deferred Action for 2014 January 1, 2016 IFRS 15 Proceeds from Customer Contracts 2014 January 1014 1 , 2018 IFRS 16 Leasing 2016 January 1 , 2019 IFRS 17 Insurance Contracts 2017 January 1, 2021 List of interpretations This section should be updated. Deemed cost is an amount used as a surrogate for cost or depreciated cost at a given date. This guide summarises these amendments plus those standards, amendments and IFRICs issued previously that are effective from 1 January 2020. Includes IFRSs with an effective date after 1 January 2014 but not the IFRSs they will replace. This site uses cookies to provide you with a more responsive and personalised service. Editorial Note. property, plant and equipment) may be measured at their fair value at the date of transition to IFRSs. We have structured the guide to provide users with an accessible reference manual: Click to Download Deloitte's Guide to IFRS 1 (PDF 435k). [IFRS 1.3], An entity may be a first-time adopter if, in the preceding year, it prepared IFRS financial statements for internal management use, as long as those IFRS financial statements were not made available to owners or external parties such as investors or creditors. An executive summary explains the most important features of IFRS 1; Section 2 provides an overview of the requirements of the Standard; Sections 3 and 4 cover the specific exceptions and exemptions from IFRS 1's general principle of retrospective application of IFRSs, focusing on key implementation issues; Section 5 addresses other components of financial statements where implementation issues frequently arise in practice; Section 6 sets out Q&As dealing with specific fact patterns that users may encounter in practice; and. IAS 1(r2007).18 2) An entity cannot rectify inappropriate accounting policies either by disclosure of the accounting policies used or by notes or explanatory material. (Previous GAAP means the GAAP that an entity followed immediately before adopting to IFRSs.). 1 January 2020 (‘forthcoming requirements’) has not been illustrated. Eligible entities subject to rate-regulation may also optionally apply IFRS 14 Regulatory Deferral Accounts on transition to IFRSs, and in subsequent financial statements. Stan-darden indeholder en hovedregel, hvorfra der er visse valgfrie og obligatoriske undtagelser. If a first-time adopter with a leasing contract made the same type of determination of whether an arrangement contained a lease in accordance with previous GAAP as that required by IFRIC 4 Determining whether an Arrangement Contains a Lease, but at a date other than that required by IFRIC 4, the amendments exempt the entity from having to apply IFRIC 4 when it adopts IFRSs. Conforming that earlier selected financial information to IFRSs is optional. It applies to an entity’s first IFRS financial statements and the interim reports presented under IAS 34, ‘Interim financial reporting’, that are part of that period. [IFRS 1.22]. These words serve as exceptions. [IFRS 1.D7], If the carrying amount of property, plant and equipment or intangible assets that are used in rate-regulated activities includes amounts under previous GAAP that do not qualify for capitalisation in accordance with IFRSs, a first-time adopter may elect to use the previous GAAP carrying amount of such items as deemed cost on the initial adoption of IFRSs. IFRS 16 Valuation Impact | What you need to know now 1 We note that companies with net cash positions have been excluded from this net debt/EBITDA analysis. In the case of 'over-funded' defined benefit plans, this would be a plan asset. 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