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International Financial Reporting Standards
Transition to IFRS in Canada
By 2011, Canada will move to the same accounting standards as are used by publicly accountable enterprises in the EU and many other countries around the world. International Financial Reporting Standards (IFRS) are being promoted as a single set of high quality, understandable and enforceable global standards.
Is your organization affected?
"Publicly accountable enterprises" will be required to move to IFRS — that term includes publicly traded companies as well as other enterprises that hold assets in a fiduciary capacity for broad groups of outsiders. The Accounting Standards Board of Canada (AcSB) is still planning the strategy for accounting standards that will apply to private businesses and not-for-profit organizations.
What benefits are expected from the change?
Using IFRS should enable Canadian companies to increase their global reach, providing shareholders and regulators with financial information that has enhanced comparability and transparency. Companies should have easier access to international capital, funding, and investment opportunities.
What are the key milestones along the way?
The transition plan in Canada will be complicated, however, by the introduction
of new standards in IFRS and Canadian GAAP that will take effect during this
period.
CSA staff have provided guidance on the annual and interim disclosures in which companies should provide discussion and analysis of the expected effects of new accounting policies relating to the changeover to IFRS. For most companies, these disclosures will begin in FY 2008.
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