1-Notes –Khalsa College for

Women.

Introduction to IFRS 1 - First-time Adoption of International Financial Reporting

Standards
International Financial Reporting Standards (IFRS) have become the global benchmark for
financial reporting, ensuring consistency and comparability in financial statements across
countries and industries. However, transitioning from a company's previous accounting
standards to IFRS can be a complex process. This is where IFRS 1, titled "First-time
Adoption of International Financial Reporting Standards," comes into play.
❖ Purpose and Significance:
IFRS 1 is a critical tool for companies embarking on the journey to adopt IFRS. It facilitates
a seamless transition while maintaining the integrity and reliability of financial
information, ultimately benefiting both businesses and the broader financial community.
IFRS 1 is a fundamental standard designed to guide companies in their initial transition to
IFRS. It serves several crucial purposes:
• Transparency and Comparability: The primary aim of IFRS 1 is to ensure that a
company's first set of IFRS financial statements is transparent and comparable to its
previous financial statements prepared under different accounting standards. This is
essential for investors, analysts, and other stakeholders who rely on financial information
to make informed decisions.
• Foundational Framework: IFRS 1 lays the groundwork for future financial reporting
under IFRS. It sets the stage for consistent and high-quality reporting, promoting financial
stability and credibility in the global market.
• Accountability: By providing clear guidelines, IFRS 1 encourages accountability in
financial reporting, ensuring that companies adhere to international best practices and
standards.

♦ Objectives of IFRS 1 - First-time Adoption of International Financial

Reporting Standards
IFRS 1, "First-time Adoption of International Financial Reporting Standards," is guided by
several core objectives, each playing a crucial role in facilitating the smooth transition to
IFRS and enhancing financial reporting integrity. Here are the main objectives:
Notes-Dr Priyaka khanna Head
Post Graduate Department of
Commerce
9814818576
1-Notes –Khalsa College for
Women.

• Transparent and Comparable Financial Statements:

One of the primary goals of IFRS 1 is to ensure that a company's initial IFRS financial
statements are transparent and comparable to its previous financial statements prepared
under different accounting standards. This transparency is vital for stakeholders, including
investors, creditors, and analysts, as it allows them to assess the financial performance and
position of the company consistently over time.
• Foundation for Future Reporting:
FRS 1 aims to establish a solid foundation for future financial reporting under IFRS. This
involves setting up a framework and accounting policies that align with international best
practices. By doing so, companies can seamlessly continue reporting under IFRS in
subsequent periods, maintaining consistency and reliability in their financial statements.
• Promotion of Transparency and Accountability:
Another critical objective of IFRS 1 is to promote transparency and accountability in
financial reporting. It achieves this by providing clear guidelines and requirements for the
transition process. Companies must disclose relevant information about the impact of
adopting IFRS, ensuring that stakeholders have a complete understanding of the changes
and their implications.
In essence, IFRS 1 serves as a bridge between a company's previous accounting standards
and the globally recognized IFRS. By achieving these objectives, it not only facilitates a
smooth transition but also contributes to the overall trust and credibility of financial
reporting, benefiting both the company and the wider financial community. In the
following sections, we will delve deeper into the specific requirements and steps involved
in adopting IFRS for the first time.

♦ Scope of IFRS 1 - First-time Adoption of International Financial Reporting

Standards
IFRS 1 is a critical standard that provides guidance for entities when transitioning from
their previous accounting standards to International Financial Reporting Standards (IFRS).
The scope of IFRS 1 encompasses all entities, whether public or private, that are embarking
on their first-time adoption of International Financial Reporting Standards To understand
its scope, it's important to emphasize that IFRS 1 applies broadly to any entity that is
adopting IFRS for the first time. Here's an explanation of its scope:
Applicability to Any Entity: IFRS 1 is not limited to specific types of entities; it applies
to a wide range of organizations. This includes both public and private companies,
regardless of their size, industry, or geographical location. Whether it's a multinational
corporation, a small family-owned business, or a not-for-profit organization, if they decide
to switch to IFRS from their previous accounting framework, they fall within the scope of
IFRS 1.

Notes-Dr Priyaka khanna Head

Post Graduate Department of
Commerce
9814818576
1-Notes –Khalsa College for
Women.

First-time Adoption Requirement: The key criterion for IFRS 1's applicability is that the
entity must be adopting IFRS for the first time. This means that if an entity has already
been reporting under IFRS in the past, it does not need to follow the guidelines outlined in
IFRS 1 for subsequent periods.
Transition Date Consideration: IFRS 1 is specifically designed to address the challenges
and requirements associated with the transition process. It focuses on the initial adoption
of IFRS and provides guidance on how to prepare the opening IFRS balance sheet and
adjust previous financial statements to align with IFRS. The transition date is the point at
which an entity begins reporting under IFRS, and IFRS 1 helps entities manage this critical
transition effectively.
Key Requirements: just give briefly Summarize the key requirements of IFRS 1, which
typically include: Preparing an opening IFRS balance sheet at the date of transition.
Reconciling equity and profit or loss from previous GAAP to IFRS. Applying IFRS
accounting policies retrospectively or using certain exemptions.
• Preparing Opening IFRS Balance Sheet:
Entities must create an opening IFRS balance sheet as of the date of transition. This balance
sheet serves as the starting point for financial reporting under IFRS and reflects the entity's
financial position at the beginning of the transition period.
• Reconciling Equity and Profit or Loss:
Entities are required to reconcile their equity and profit or loss from their previous
Generally Accepted Accounting Principles (GAAP) or local accounting standards to IFRS.
This reconciliation helps identify and explain the differences in financial position and
performance between the previous standards and IFRS.
• Application of IFRS Accounting Policies:
Entities must apply IFRS accounting policies to their past transactions and events either
retrospectively or by using certain exemptions, as permitted by IFRS 1. This ensures that
financial information is presented consistently and in accordance with IFRS principles.

These key requirements form the foundation of IFRS 1, guiding entities through the process
of transitioning to International Financial Reporting Standards and enabling the production
of transparent and comparable financial statements.

Opening IFRS Balance Sheet: The Starting Point for IFRS Reporting
The opening IFRS balance sheet is a crucial component of the transition process when an
entity adopts International Financial Reporting Standards (IFRS) for the first time. It
represents the financial position of the entity at the beginning of the transition period,
typically the date of the initial adoption of IFRS. Here's an explanation of this concept and
why it holds paramount importance in the transition process:

Notes-Dr Priyaka khanna Head

Post Graduate Department of
Commerce
9814818576
1-Notes –Khalsa College for
Women.

1. Defining the Opening IFRS Balance Sheet:

• The opening IFRS balance sheet is essentially a snapshot of an entity's financial position
on the date it transitions to IFRS. It includes all assets, liabilities, and equity items in
accordance with IFRS standards. This balance sheet is distinct from any previous financial
statements prepared under different accounting frameworks, such as local Generally
Accepted Accounting Principles (GAAP).
2. Importance in the Transition Process:
• Baseline for IFRS Reporting: The opening IFRS balance sheet serves as the baseline or
starting point for IFRS financial reporting. It is the reference point from which subsequent
financial statements are built. Without a clear starting position aligned with IFRS, it would
be challenging to produce accurate and comparable financial information.
• Ensuring Consistency: IFRS 1 requires that the opening IFRS balance sheet be prepared
in accordance with IFRS principles. This ensures that from the transition date onward, all
financial reporting is consistent with global accounting standards. It eliminates
discrepancies and enhances comparability.
• Impact Assessment: By creating the opening IFRS balance sheet, entities can assess the
immediate impact of the transition to IFRS on their financial position. This helps
management and stakeholders understand how the change in accounting standards affects
assets, liabilities, and equity.
• Basis for Future Reporting: Once established, the opening IFRS balance sheet becomes
the foundation for subsequent financial statements under IFRS. It provides a seamless
transition into ongoing reporting, helping entities maintain continuity in their financial
reporting.
In summary, the opening IFRS balance sheet is not just a formality; it is a critical step in
the transition process to IFRS. It represents the starting point for financial reporting under
IFRS, ensuring consistency, comparability, and accuracy in financial statements, which are
essential for decision-making and financial transparency. As entities continue to report
under IFRS, the opening balance sheet remains a reference point for future assessments
and analyses of financial performance and position.

Reconciliation Process in IFRS Adoption: Bridging the Gap

The reconciliation process is a pivotal step when an entity transitions from its previous
accounting framework, often referred to as Generally Accepted Accounting Principles
(GAAP) or local accounting standards, to International Financial Reporting Standards
(IFRS). This process involves systematically identifying and explaining the differences

Notes-Dr Priyaka khanna Head

Post Graduate Department of
Commerce
9814818576
1-Notes –Khalsa College for
Women.

between the financial statements prepared under the previous standards and those prepared
under IFRS. Here's a comprehensive explanation of this critical process:
1. Identifying Differences:
• The first step in the reconciliation process is to identify the disparities between the financial
statements prepared under the previous accounting standards (GAAP or local standards)
and those that would be prepared under IFRS. These differences can arise due to variations
in accounting principles, treatment of specific transactions, measurement methodologies,
and disclosure requirements.
2. Restating Assets, Liabilities, Equity, and Income:

• Once the differences are identified, the entity must address them by restating relevant items
in the financial statements. This restatement often applies to key financial statement
elements, including:
• Assets: The values of assets may need to be adjusted to align with IFRS principles. This
can include changes in valuation methods, recognition criteria, or impairment assessments.
• Liabilities: Liabilities may require restatement to adhere to IFRS guidelines. This could
involve modifications in the timing of recognition, measurement methods, or the inclusion
of additional liabilities that weren't previously recognized.
• Equity: Changes to equity may occur due to adjustments in accounting policies,
retrospective application of IFRS, or recognition of items not previously considered under
the previous standards.
• Income: Reconciliation may also affect income, particularly in terms of revenue
recognition, expense recognition, and the treatment of gains and losses.
3. Comprehensive Disclosure:
• In addition to restating the financial statement items, IFRS 1 mandates comprehensive
disclosure. Entities are required to disclose detailed information about the nature and
impact of the reconciling items. This disclosure helps users of financial statements
understand the reasons behind the differences and their effects on the entity's financial
position and performance.
4. Importance of the Reconciliation Process:

• The reconciliation process serves several crucial purposes:

• Transparency: It ensures transparency by clearly showing stakeholders how the transition
to IFRS affects the entity's financial statements.
• Comparability: It enhances comparability by allowing users to understand and compare
the financial results before and after the adoption of IFRS.
• Risk Assessment: It helps management and auditors assess the risks associated with the
transition and verify the accuracy of the restated financial statements.

Notes-Dr Priyaka khanna Head

Post Graduate Department of
Commerce
9814818576
1-Notes –Khalsa College for
Women.

• Decision-Making: It assists investors, creditors, and other stakeholders in making

informed decisions based on the reconciled financial information.
In summary, the reconciliation process is a meticulous and essential aspect of adopting
IFRS. It bridges the gap between the previous accounting standards and IFRS, ensuring
that the financial statements produced under IFRS are accurate, transparent, and
comparable. Through proper identification, restatement, and disclosure of differences, the
reconciliation process facilitates a smooth transition to IFRS while maintaining the
integrity of financial reporting.

Retrospective Application in IFRS: Applying Accounting Policies Back in Time

Retrospective application is a fundamental concept in IFRS adoption where companies
apply IFRS accounting policies to past transactions and events as if these policies had
always been applied. This approach is designed to ensure consistency and comparability in
financial reporting, even when transitioning from a different accounting framework. Here's
a detailed explanation of retrospective application:
1. Applying IFRS Policies Retroactively:
• Retrospective application involves the restatement of prior financial statements to reflect
the application of IFRS accounting policies. This means that companies adjust their
historical financial information to align with the principles and requirements of IFRS.
2. Consistency and Comparability:
• The primary purpose of retrospective application is to enhance the consistency and
comparability of financial statements. By applying IFRS policies to past periods, financial
information becomes directly comparable with future periods reported under IFRS.
3. Key Aspects of Retrospective Application:
• Adjustments to Opening Balance Sheet: One of the core aspects of retrospective
application is making adjustments to the opening balance sheet when a company transitions
to IFRS. This balance sheet represents the financial position at the beginning of the first
period of IFRS adoption.
• Restating Historical Financial Statements: Under retrospective application, historical
financial statements, including income statements and balance sheets, are restated to reflect
IFRS policies. This includes revaluating assets, recognizing previously unrecorded items,
and adjusting the timing of revenue and expense recognition, among other changes.
• Disclosure Requirements: Companies are required to provide comprehensive disclosures
regarding the nature and impact of the changes resulting from retrospective application.

Notes-Dr Priyaka khanna Head

Post Graduate Department of
Commerce
9814818576
1-Notes –Khalsa College for
Women.

This ensures that stakeholders have a clear understanding of the transition's effects on
financial reporting.
4. Benefits and Considerations:
• Improved Comparability: Retrospective application enables users of financial statements
to make meaningful comparisons across different reporting periods, as the accounting
policies remain consistent.
• Increased Transparency: It enhances the transparency of financial reporting by clearly
showing how the transition to IFRS impacts historical financial data.
• Challenges: However, retrospective application can be challenging and resource-
intensive, particularly for companies with complex historical financial records. It requires
a thorough understanding of IFRS principles and may involve significant data
reprocessing.
5. Alternatives to Retrospective Application:
• In some cases, IFRS permits certain exemptions or alternatives to full retrospective
application. Companies may choose to apply certain IFRS policies prospectively from the
transition date instead of restating historical information. These exemptions are outlined in
IFRS 1.
In summary, retrospective application in IFRS involves applying IFRS accounting policies
to past transactions and events to ensure consistency and comparability in financial
reporting. While it can be challenging, it provides valuable benefits by aligning historical
data with current and future IFRS reporting, ultimately enhancing transparency and
facilitating informed decision-making for stakeholders.

IFRS 1 provides specific exemptions and exceptions to ease the transition process for
companies adopting International Financial Reporting Standards (IFRS) for the first time.
These exemptions and exceptions help companies manage the challenges associated with
retrospective application. Here are some of the key exemptions and exceptions allowed
under IFRS 1:
1. Business Combinations:
• IFRS 1 provides an exemption from retrospective application for business combinations
that occurred before the date of transition to IFRS. This means that companies are not
required to restate business combinations under IFRS that occurred prior to their transition
date.
2. Fair Value Measurement:

• Entities adopting IFRS for the first time may choose to measure an item of property, plant,
and equipment at fair value at the date of transition instead of the item's historical cost.

Notes-Dr Priyaka khanna Head

Post Graduate Department of
Commerce
9814818576
1-Notes –Khalsa College for
Women.

This fair value becomes the deemed cost under IFRS. This exemption is optional and can
be applied to individual items or classes of property, plant, and equipment.
3. Cumulative Translation Differences:
• Companies may choose to reset the cumulative translation differences (CTD) for all foreign
operations to zero at the date of transition to IFRS. This means that any historical gains or
losses arising from translating foreign operations' financial statements into the reporting
currency are eliminated.
4. Decommissioning Liabilities:
• Entities can choose to recognize the fair value of decommissioning liabilities at the date of
transition, rather than the historical cost, as the deemed cost of these liabilities.
5. Designation of Previously Recognized Financial Instruments:

• When transitioning to IFRS, companies can designate previously recognized financial

instruments at their fair value through profit or loss if certain conditions are met. This
designation helps align IFRS reporting with previous accounting policies.
6. Share-Based Payment Transactions:

• IFRS 1 provides an exemption for share-based payment transactions. Companies are not
required to restate the fair value of equity instruments granted before the date of transition.
It's important to note that while these exemptions and exceptions can simplify the transition
process, companies need to carefully assess whether they are applicable and appropriate
for their specific circumstances. Additionally, companies must provide disclosures about
the use of these exemptions and exceptions in their financial statements to ensure
transparency and clarity for stakeholders. Compliance with IFRS 1's disclosure
requirements is crucial to provide a comprehensive understanding of the impact of the
transition to IFRS.

Disclosure Requirements: The disclosure is of paramount importance in financial reporting

under International Financial Reporting Standards (IFRS). It plays a crucial role in ensuring
transparency, accountability, and informed decision-making by stakeholders. When a
company is transitioning to IFRS, it must provide detailed information about this process
and the impact on its financial statements. Here's why disclosure is essential in IFRS
reporting:
• Transparency and Full Disclosure: IFRS places a strong emphasis on transparency in
financial reporting. Disclosure requirements ensure that companies provide complete and
accurate information about their financial performance and position. This transparency
builds trust and confidence among investors, creditors, and other stakeholders.
• Impact Assessment: Disclosure allows stakeholders to understand the impact of the
transition to IFRS on a company's financial statements. It provides insights into the nature

Notes-Dr Priyaka khanna Head

Post Graduate Department of
Commerce
9814818576
1-Notes –Khalsa College for
Women.

and magnitude of changes in accounting policies, adjustments to historical financial data,

and the reasons behind these changes.
• Informed Decision-Making: Investors and creditors rely on financial statements to make
informed decisions about lending, investing, or engaging with a company. Detailed
disclosures enable stakeholders to assess the potential risks and opportunities associated
with the transition to IFRS.
• Comparability: Disclosure ensures that financial statements are comparable both over
time and with those of other companies. It allows users to make meaningful comparisons
between periods and across different entities, even when accounting standards change.
• Compliance with IFRS Requirements: IFRS includes specific disclosure requirements
that companies must adhere to. Non-compliance with these requirements can result in
financial statements not being in compliance with IFRS, which can have legal and
regulatory implications.
• Impact on Key Metrics: Disclosure helps stakeholders understand how the transition
affects key financial metrics, such as earnings per share, equity, and cash flows. This
information is vital for assessing a company's financial health and performance.
• Relevance to Various Stakeholders: Disclosure benefits a wide range of stakeholders,
including investors, creditors, regulatory authorities, analysts, and employees. It ensures
that all interested parties have access to pertinent information about the transition to IFRS.
• Enhanced Credibility: Companies that provide comprehensive and clear disclosures
demonstrate a commitment to transparency and good corporate governance. This enhances
their credibility in the eyes of investors and the broader financial community.
• Legal and Regulatory Compliance: In many jurisdictions, companies are legally required
to comply with IFRS disclosure requirements. Non-compliance can result in regulatory
penalties and legal consequences.
In summary, disclosure is a fundamental component of financial reporting under IFRS. It
serves the critical purpose of providing stakeholders with a complete and accurate
understanding of the transition to IFRS and its impact on a company's financial statements.
Companies should approach disclosure with diligence and care, ensuring that they meet the
specific requirements outlined in IFRS standards to maintain transparency, credibility, and
compliance.

Practical Examples:
Example 1: Reconciliation of Equity
Scenario: Company A is transitioning from its local GAAP to IFRS. One significant
difference is how it accounts for stock-based compensation. Under local GAAP, the
company expensed stock options when granted. Under IFRS, it's required to recognize the
fair value of these options as equity-settled share-based payments. Company A needs to
reconcile its equity to align with IFRS.
Notes-Dr Priyaka khanna Head
Post Graduate Department of
Commerce
9814818576
1-Notes –Khalsa College for
Women.

Adjustment (IFRS - Local

Element Amount under Local GAAP GAAP)
Equity as of 01/01 $1,000,000
Stock Compensation $(50,000) $80,000
Equity as of 01/01 (IFRS) $950,000
In this example, Company A adjusts its equity to reflect the IFRS treatment of stock-based
compensation, resulting in a higher equity balance under IFRS.
Example 2: Reconciliation of Property, Plant, and Equipment (PPE)
Scenario: Company B is transitioning to IFRS from its previous accounting standards.
Under its previous standards, PPE was recorded at historical cost, and no revaluation was
allowed. Under IFRS, the company has chosen to revalue its PPE to fair value at the date
of transition. Company B needs to reconcile the PPE balances.
Amount under Previous Adjustment (IFRS -
PPE Item Standards Previous Standards)
Land $500,000 $600,000
Buildings $1,000,000 $1,200,000
Machinery $800,000 $950,000
PPE as of 01/01 (IFRS) $2,300,000
In this example, Company B revalues its PPE to fair value as required by IFRS, resulting
in higher asset values compared to historical cost.
Conclusion:
Example 4: Adjustment for Fair Value Measurement of Financial Assets
Scenario: Company C is transitioning to IFRS from its previous accounting standards,
which didn't allow for the fair value measurement of financial assets. Under IFRS, the
company is required to fair value certain financial assets at the date of transition.
Amount under Previous Adjustment (IFRS -
Financial Asset Standards Previous Standards)
Investment in Stocks $500,000 $550,000
Bonds $200,000 $220,000
Total Equity Adjustment $70,000
Equity as of 01/01 (IFRS) $1,000,000
In this example, Company C adjusts the carrying values of its financial assets to fair value
as required by IFRS, resulting in a positive adjustment to equity.

Notes-Dr Priyaka khanna Head

Post Graduate Department of
Commerce
9814818576
1-Notes –Khalsa College for
Women.

Example 5: Adjustment for Employee Benefits

Scenario: Company D is transitioning to IFRS from its previous accounting standards,
which used a different method for recognizing employee benefits. Under IFRS, the
company is required to apply the IAS 19 standard for employee benefits.
Amount under Previous Adjustment (IFRS -
Employee Benefit Standards Previous Standards)
Pension Obligation $(150,000) $(100,000)
Share-Based Payments $(30,000) $(40,000)
Total Equity Adjustment $(140,000)
Equity as of 01/01 (IFRS) $800,000
In this example, Company D adjusts its employee benefit obligations and share-based
payments to align with IFRS requirements, resulting in a negative adjustment to equity.
Example 6: Adjustment for Income Tax Effects
Scenario: Company E is transitioning to IFRS from its previous accounting standards,
which used a different method for recognizing income tax. Under IFRS, the company is
required to apply IAS 12 for income taxes.
Amount under Previous Adjustment (IFRS -
Income Tax Provision Standards Previous Standards)
Deferred Tax Assets $50,000 $60,000
Income Tax Liabilities $(20,000) $(30,000)
Total Equity Adjustment $40,000
Equity as of 01/01 (IFRS) $600,000
In this example, Company E adjusts its deferred tax assets and income tax liabilities to
conform with IFRS requirements, resulting in a positive adjustment to equity.
These examples demonstrate how adjustments in equity can arise when transitioning to
IFRS, particularly when accounting policies and measurement methods change to align
with IFRS standards. In summary, the main points covered in the explanation of IFRS 1,
"First-time Adoption of International Financial Reporting Standards," are as follows:
• Introduction to IFRS 1: IFRS 1 serves as guidance for companies transitioning to
International Financial Reporting Standards (IFRS) for the first time.
• Objectives of IFRS 1: These include ensuring transparent and comparable financial
statements, establishing a foundation for future IFRS reporting, and promoting
transparency and accountability.
• Scope of IFRS 1: IFRS 1 applies to any entity, whether public or private, that is adopting
IFRS for the first time, making it applicable across diverse organizations.
Notes-Dr Priyaka khanna Head
Post Graduate Department of
Commerce
9814818576
1-Notes –Khalsa College for
Women.

• Key Requirements: Key requirements include preparing an opening IFRS balance sheet,
reconciling equity and profit or loss from previous standards to IFRS, and applying IFRS
accounting policies retrospectively or using certain exemptions.
• Opening IFRS Balance Sheet: This represents the starting point for IFRS reporting and
ensures consistency in financial statements.
• Reconciliation: Companies identify and explain differences between previous accounting
standards and IFRS, often restating assets, liabilities, equity, and income.
• Retrospective Application: This involves applying IFRS accounting policies to past
transactions and events, enhancing comparability and consistency in financial reporting.
• Exemptions and Exceptions: IFRS 1 provides certain exemptions and exceptions, such
as those related to business combinations and fair value measurement, to ease the transition
process.
• Disclosure Requirements: Companies must provide detailed information about their
transition to IFRS and the impact on their financial statements, promoting transparency and
informed decision-making.
The significance of IFRS 1 in the global accounting and financial reporting landscape is
profound:
• Global Standardization: IFRS 1 contributes to global standardization in financial
reporting by guiding companies worldwide in adopting a common set of accounting
principles. This harmonization enhances the comparability and consistency of financial
statements across borders.
• Facilitating Cross-Border Investment: Investors and creditors rely on IFRS-compliant
financial statements to assess the financial health of companies operating in various
countries. IFRS 1's guidelines ensure that these stakeholders can readily analyze and
compare financial data, facilitating cross-border investment decisions.
• Enhancing Accountability: By requiring comprehensive disclosures and adjustments,
IFRS 1 promotes transparency and accountability in financial reporting. Companies are
compelled to explain how the transition to IFRS affects their financial position and
performance.
• Supporting Investor Confidence: IFRS 1 plays a pivotal role in building investor
confidence by ensuring that companies adopting IFRS for the first time present accurate
and reliable financial information. This, in turn, fosters trust in global financial markets.
• Global Financial Stability: A standardized transition to IFRS, as facilitated by IFRS 1,
contributes to global financial stability by aligning reporting practices with international
best practices. This stability is essential for economic growth and investment.
In conclusion, IFRS 1 is a vital standard that serves to harmonize global financial reporting,
promote transparency, and enhance accountability in the financial world.

Notes-Dr Priyaka khanna Head

Post Graduate Department of
Commerce
9814818576