[1] IFRS 1 has been cited by Association of Chartered Certified Accountants (ACCA) as having "great practical significance" in jurisdictions that are adopting the IFRSs.
[2] The standard has been endorsed by the European Commission for use in the European Union,[3] with the Commission Services finding in 2009 that the latest version of IFRS 1 has benefits that outweigh the costs of adoption.
[1] Any adjustments due to the previous use of a different GAAP are to be recognized directly in retained earnings or another category of equity if appropriate.
For example, it requires entities to present certain reconciliations between accounting amounts under the previous GAAP and that under IFRS.
[1] Additionally, interim financial reports covering part of the period of the first IFRS financial statement are also required to include reconciliations from the previous GAAP, among other requirements.