IFRS 1 & IFRS 2 Implementation Services
First-time IFRS adoption and share-based payment accounting, done properly. Clarity Founders handles the transition to IFRS (IFRS 1) and the accounting for share options and equity awards (IFRS 2) — transition planning, valuation and disclosures your auditors will accept.
What we do
Two of the trickier IFRS standards, handled end to end.
First-time adoption (IFRS 1)
Managing the transition to IFRS, including the opening IFRS balance sheet and the exemptions and elections available on first-time adoption.
Transition adjustments
Identifying and quantifying the adjustments between your previous framework and IFRS, with clear reconciliations.
Share-based payment (IFRS 2)
Accounting for employee share options, equity awards and other share-based payments, including cash-settled arrangements.
Option & award valuation
Valuing options and awards using appropriate models, with inputs and assumptions documented.
Vesting & expense recognition
Spreading the charge over the vesting period with the right treatment of conditions and modifications.
Disclosures
Preparing the IFRS 1 and IFRS 2 disclosures and reconciliations your financial statements require.
How we work
A planned transition, not a scramble at year-end.
Assess impact
We assess how IFRS adoption and any share schemes affect your numbers and where the work sits.
Plan the transition
We plan the transition date, elections and the valuation approach for any awards.
Calculate & account
We prepare the opening balance sheet, transition adjustments and share-based payment charges.
Disclose & support audit
We draft the disclosures and support you through audit of the transition.
Who it's for
Companies moving to IFRS, or rewarding people with equity.
- Companies moving to IFRS for the first time
- Businesses required to adopt IFRS by regulators or investors
- Companies introducing employee share options or equity plans
- Startups issuing ESOPs that need proper accounting
- Groups aligning subsidiaries to IFRS reporting
- Companies whose auditors have raised IFRS 1 or IFRS 2 issues
What you get
The calculations, treatment and disclosures, all audit-ready.
- An IFRS-compliant opening balance sheet
- Quantified transition adjustments and reconciliations
- Share-based payment valuations and charges
- Correct vesting and expense recognition
- IFRS 1 and IFRS 2 disclosure notes
- A named FCA accountable for the treatment
Why Clarity Founders
Complex standards, applied correctly and pragmatically.
Technical IFRS depth
Complex standards applied correctly and pragmatically, not by the textbook alone.
Audit-aligned
Workings and disclosures prepared to your auditors' expectations.
Joined-up
IFRS work connected to your wider accounting and reporting.
Pakistan & international
IFRS as adopted in Pakistan and as applied globally.
Frequently asked questions
What is IFRS 1 and when does it apply?
IFRS 1 governs a company's first IFRS financial statements, setting the rules for the opening balance sheet, exemptions and reconciliations from the previous framework.
What does IFRS 2 require for share options?
IFRS 2 requires share-based payments to be recognised as an expense, measured at fair value, and spread over the vesting period, with specific rules for conditions and modifications.
We're a startup issuing ESOPs — do we need IFRS 2?
If you report under IFRS and grant equity awards, yes. We value the awards and set up the accounting and disclosures.
How disruptive is moving to IFRS?
With a proper transition plan it is manageable. We handle the technical work and reconciliations so your team can focus on the business.
Will you prepare the disclosures and support the audit?
Yes. We draft the IFRS 1 and IFRS 2 disclosures and support you through the audit of the transition.
Move to IFRS with confidence
Book a free consultation and we'll map your transition and any share-based payment accounting.
Book a free consultation