IASB/FASB Conceptual Framework Project

The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have published a draft of the first two chapters of a Conceptual Framework for Financial Reporting. The draft defines the objective of financial reporting and the qualitative characteristics of financial information useful for making decisions. Future chapters will address technical definitions, as well as the measurement, recognition and presentation of information in financial statements.

Private Company Strategies: New Directions

Over the next five years, Canadian accounting standards will move in new directions. Standards for public companies will converge with International Financial Reporting Standards (IFRS). That strategy was outlined in Bulletin #1. What about private companies — those that are not publicly accountable to a wide constituency? Should they also use IFRS? The research includes undertaking a comprehensive examination of financial statement user needs and determining the most appropriate financial reporting model to meet those needs. Private Company Strategies: New Directions (Bulletin #2) is an initial report on that research.

Canada’s new IFRS Advisory Committee (IAC)

The objective of Canada’s IFRS Advisory Committee (IAC) is to provide support to the Canadian Accounting Standards Board on technical issues arising during the incorporation of International Financial Reporting Standards (IFRS) into Canadian GAAP, and beyond. IAC meetings are normally open to the public, but portions will be held in camera at the discretion of the Chair. The inaugural meeting (scheduled for August 16, 2006 in Toronto, Canada) will cover: the structure of the International Accounting Standards Board (IASB) and its upcoming agenda; the IAC terms of operation and responsibilities; and the implementation plan for incorporating IFRS into Canadian GAAP for publicly accountable entities.

Canada’s adoption of IFRS

The Canadian Accounting Standards Board has published its Implementation Plan for incorporating International Financial Reporting Standards (IFRS) into Canadian GAAP. The Implementation Plan outlines the key steps to be taken in adopting IFRS, including the expected timing of adoption of particular IFRS and an indication of the differences between IFRS and existing Canadian standards.