Preparing your first IFRS financial statements: Adopting IFRS

March 2008
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Preparing your first IFRS financial statements: Adopting IFRS

At a glance

This PwC publication is a component of our IFRS readiness series and addresses how to prepare your first IFRS financial statements in the process of the conversion from US GAAP to IFRS.

As US companies convert from US GAAP to IFRS they will need to apply IFRS 1, First-time adoption of International Financial Reporting Standards. The IASB issued IFRS 1 to assist companies with the process of converting from their current GAAP to IFRS.

The overriding principle of IFRS 1 is full retrospective application of all IFRS standards.

The IASB recognized how challenging retrospective application may be for many companies, particularly where data and information may not be readily available. Accordingly, IFRS 1 includes several optional exemptions and mandatory exceptions to retrospective application to ease the burden of first-time adoption. Even with these accommodations, the conversion process remains complex and time-consuming and presents management with some tough decisions.

The purpose of this volume is to help US companies address some of those decisions by understanding the process of selecting their new IFRS accounting policies and applying the guidance in IFRS 1 as they begin to prepare for their first IFRS financial statements. This publication provides specific considerations for US companies and is part of the firm's ongoing commitment to help companies navigate the switch from US GAAP to IFRS.

This publication is part of our "IFRS readiness series" and is intended to accompany Mapping the change: IFRS implementation guide.

For hard copies of this publication, please contact your PwC engagement team, or use the contact us form.