First-time adoption of IFRS Accounting Standards — Accounting glossary

IFRS 1 generally requires an opening IFRS statement of financial position at the transition date, consistent accounting policies throughout the periods presented, and reconciliations and disclosures explaining the move from previous GAAP. The standard provides specified mandatory exceptions and optional exemptions from full retrospective application. Apply the actual transition facts and period-specific requirements; adopting one new standard is not necessarily first-time adoption of IFRS as a whole.

Worked example

An entity prepares its first IFRS financial statements for the year ended 31 December 2027 with one comparative year, 2026. Its date of transition is 1 January 2026, the start of the earliest comparative period. It prepares an opening IFRS statement of financial position at that date, applying the relevant IFRS 1 exceptions and exemptions.

Common mistake

Calling every change to a new IFRS standard first-time adoption or assuming all IFRS requirements must always be applied without exceptions.

Where it appears in your exams

Qualification	Exam	Relationship	Period
ACCA	SBR	Supporting	September 2026–June 2027