IFRS: on your mark, set, go!

Generally accepted accounting principles (GAAP), an accounting regime that has served Canadian companies and investors well for 35 years, will disappear on January 1, 2011. International Financial Reporting Standards (IFRS) will take its place. Almost everyone says it is the biggest change in Canadian accounting since GAAP itself became the national standard in 1972. The transition to a single, international accounting language may be rife with challenges but it will deliver key benefits (Read the article "Global Standards.")

Putting IFRS in Motion - PricewaterhouseCoopers Canada

Implementing International Financial Reporting Standards (IFRS) can be a complicated and daunting task. To stay current on Canadian accounting developments and industry-specific issues, PricewaterhouseCoopers has launched an IFRS microsite www.pwcifrs.ca Visit the site for ideas on how to get started and how to prepare for conversion to IFRS.

Countdown - Deloitte Canada’s IFRS transition newsletter

The second issue of Countdown, Deloitte Canada’s IFRS transition newsletter, deals with the initial stages of IFRS implementation to help Canadian companies determine their priorities. Articles cover the transition journey: where are we now?; IFRS implementation planning; conversion activities; conference activities (including an April 14, 2008 webcast on IFRS in Canada); and IFRS impacts beyond financial reporting. Additional information is available on Deloitte's Canada Page.

IASB Update and IFRIC Update – March 2008

Periodically, the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) publish newsletters on their activities. The IASB Update and IFRIC Update are published as a convenience to the IASB’s constituents. The reported conclusions are tentative and may be changed or modified at future IASB or IFRIC meetings.

IASB paper on complexity in reporting financial instruments

The IASB has published for public comment a discussion paper Reducing Complexity in Reporting Financial Instruments. The existing requirements for the reporting of financial instruments are widely regarded as difficult to understand, interpret and apply, and constituents have urged the IASB to develop standards that are principle-based and less complex. (View the Press Release, Discussion Paper or IASB webpage to provide comments.)

SEC Advisory Committee on Financial Reporting

The US Securities and Exchange Commission (SEC) Advisory Committee on Improvements to Financial Reporting met on March 13-14, 2008 in San Francisco. It discussed the proposals published on February 14, 2008 as part of the Progress Report to the SEC. The discussion focused on restatements, professional judgment and XBRL. (View the Agenda for the meeting and the Project webpage.)

IASC Foundation XBRL Update

The IASC Foundation has published the XBRL Update newsletter for March 2008. It provides information on the XBRL-enablement of IFRS around the world including Belgium, Europe, India, Ireland, Israel, Japan, Singapore and United States. To subscribe to the newsletter, visit the IASCF XBRL webpages.

IFRS in Canada: Cleared for Take-Off

Canada's Accounting Standards Board (AcSB) has prepared a Bulletin that addresses the convergence with International Financial Reporting Standards (IFRS). Bulletin #6, IFRS in Canada: Cleared for Take-Off, highlights things to think about now that the date to change over to IFRS has been set.

IASB discussion paper on financial instruments with characteristics of equity

The IASB has published for public comment a discussion paper on the distinction between equity financial instruments and other financial instruments (non-equity instruments). The discussion paper is the first stage of the IASB’s project to improve and simplify the requirements in IAS 32 Financial Instruments: Presentation. (View the Press Release.)

IASB on Fair Value Measurement

IASB staff has begun the review of existing fair value measurements in IFRS to assess whether each standard’s use of a fair value measurement basis was intended to be an exit price. The review will be completed in the second quarter of 2008. During the third quarter of 2008, the Board plans to hold roundtable discussions with constituents. It is anticipated that an exposure draft will be published in mid-2009. (Visit the IASB project page, access the material sent to the external reviewers or view the full project summary.)

Surveying the use of IFRS in the European Union

Since 2005, European companies listed in a European securities market have been required to use IFRS to prepare their consolidated financial statements. The European Union Accounting Regulation gave EU member states several options for applying IFRS. The European Commission has updated its earlier surveys of member states regarding the application of International Financial Reporting Standards. (View the Table on Use of IFRS Options or project data.)

IASB publishes IFRS Bound Volume 2008

The IASB has published International Financial Reporting Standards 2008. The English language Bound Volume contains the official consolidated text of all authoritative IASB pronouncements approved for issue at January 1, 2008. (The publication can be ordered online at the IASB website.)