First new international standard published

Link: Firms ill-equipped for start of IFRS

The first International Financial Reporting Standard, IFRS 1, relates to the first-time adoption of the new standards and explains how an entity should make the transition to IFRSs from any another basis of accounting.

The standard is the first on a somewhat controversial list and requires a company to comply with every IASB standard in force in the first year that it adopts IFRSs.

‘Thousands of companies throughout the world will be required to adopt IFRSs in the coming years, and the requirements of IFRS 1 are designed to ease the transition for all concerned and to ensure that users of accounts are given high quality information,’ said IASB chairman Sir David Tweedie.

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