How a competent developer would handle transferring Pokemon from the gen 1 Virtual Console games to Bank:
>gender is based on dvs like it is in gen 2
>shininess is based on dvs like it is in gen 2
>ivs are determined by doubling the original dvs and then adjusting them up or down one at a time until the hidden power types match (perhaps with the pid determining whether the iv is increased or decreased)
How Game Freak handled it:
>gender is random
>shininess is based on dvs, but attack and defense are swapped so pokemon that should become shiny don't and vice-versa
>ivs are completely random and three are guaranteed perfect, usually changing and unncessarily restricting hidden power's type, despite this being the same gen that introduced hyper training making ivs irrelevant outside of hidden power to begin with
>wait until gen 2 is re-released to fix the first two problems (inadvertently screwing over people who reset for shinies according to the wrong formula and didn't manage transfer them before the update hit) while completely ignoring the third
And speaking of IVs, Hidden Power, and Game Freak's incompetence, there is literally 0 (zero) excuse for not allowing Hidden Power to be Fairy-type. They changed the shiny formula to make shinies twice as common, but Pokemon from previous gens whose PIDs would make them shiny according to the new formula don't magically become shiny when transferred. Why can't they do the same for Hidden Power Fairy? Take all those redundant IV spreads where changing a single IV doesn't change the type, and make them yield HP Fairy if the IV is even and the Pokemon is from the current gen, but have Pokemon from previous gens keep their original HP type regardless. This isn't fucking rocket science. But then again I guess even that's too much to expect from a developer that took four gens to figure out how to change an alternate form's base HP.