IFRS allows either following direct or step-by-method of consolidation

Under the direct method is the method of consolidation the financial statements of the foreign operation are translated directly into the functional currency of the ultimate parent.

However, under step-by-step method of consolidation the financial statements of the foreign operation are first translated into the functional currency of any intermediate parent/(s) and then translated into the functional currency of the ultimate parent (or the presentation currency if different).

IFRIC 16, Hedges of a Net Investment in a Foreign Operation, which was released in July, 2008 provides guidance states that you can either use either direct or step-by-step method of consolidation.

The cumulative translation amount (CTA) derived under either direct method or step-by-step method of consolidation is the same.

First time adopters of IFRS would need to determine and document which method of consolidation they would follow on IFRS adoption.  This selection would primarily depend upon the current general ledger systems of the company.