Preparation of reporting under IFRS is mandatory for financial institutions and companies in most countries of the world. In Ukraine, banks have been using IFRS in their activities for a long time. The transition of non-banking financial institutions to IFRS began in 2012.
Understanding the principles of IFRS and their use in practice is associated with the presence of certain difficulties, especially at the stage of their initial application. In this regard, the Board of the IFRS Council developed and in 2003 adopted IFRS 1 First-time Adoption of International Financial Reporting Standards. This standard is now used together with IFRS (IAS) 1 «Presentation of Financial Statements».
IFRS 1 can be used in full when the organization in previous reporting periods prepared statements using separate standards. It can also be used by organizations that previously prepared reports in accordance with the fundamental principles of international standards, but it was impossible to unequivocally state that all the requirements of IFRS were met. In addition, the standard should be used by organizations that previously prepared financial statements in accordance with national requirements and national standards that partially correspond to IFRS. At the same time, there was no statement that this organization provided reporting that fully complies with IFRS.
Thus, the provisions of IFRS 1 indicate that companies that apply IFRS for the first time are those that for the first time present in their financial statements useful, reliable and reliable information that fully meets all the requirements of IFRS.
teoaudit © 2026
