Canadian business confident of readiness for IFRS changeover

A survey of Canadian Chartered Accountants in senior executive roles suggests that many companies believe they will be ready for the changeover to International Financial Reporting Standards (IFRS), but they remain in the early stages of preparedness. About 425 senior executives were surveyed in November 2008. (Read the CICA Media Release.)

European Commission grants equivalence in relation to third country GAAPs

The European Commission has adopted measures which determine that GAAPs in the US, Japan, China, Canada, South Korea and India are equivalent to International Financial Reporting Standards (IFRS). The Commission will review the situation of some of these countries (China, Canada, South Korea, India) by 2011. It will also regularly monitor the ongoing status of equivalence. The measures mean that foreign companies listed on EU markets will continue to be able to file their financial statements prepared in accordance with those GAAPs (the transitional provisions allowing the use of these GAAPs in the EU would otherwise have expired at the end of 2008). (Read the Press Release.)

IASC Foundation publishes update on responses to G20 conclusions

The IASC Foundation has published a table summarizing the actions and ongoing work by the International Accounting Standards Board (IASB) in response to the conclusions reached by the G20 leaders in their summit in Washington DC on November 15, 2008. (For more information, read the IASC Foundation Press Release.)

SEC Signals No Major Shake-Up for Fair Value

US Securities and Exchange Commission (SEC) Chairman Christopher Cox, speaking this week at an AICPA conference, said investors have told the SEC that fair value measurement has increased transparency in financial reporting. But Cox signaled that the SEC would call for some additional guidance on fair value measurements. (View highlights from Chairman Cox's speech.)

How IFRS is affecting accounting education

For those charged with educating the next generation of accountants, the expected shift from US GAAP to International Financial Reporting Standards (IFRS) stirs up a host of potentially thorny issues. Professors and college administrators are dealing with questions about the timing of the curriculum expansion and the resources needed to handle IFRS. They are examining how to reconfigure course work to make room for international standards. (Read the article On the Verge of an Academic Revolution.)

AICPA inaugural IFRS webcast on Dec. 12, 2008

The American Institute of Certified Public Accountants (AICPA) is offering its inaugural International Financial Reporting Standards (IFRS) webcast on December 12, 2008. A first in a new series, the IFRS Quarterly Webcast Series - IFRS 101: The Essentials, will review the background and history on IFRS convergence efforts, the proposed SEC Roadmap published on November 14, 2008, a summary of differences between IFRS and US GAAP, and how all of these changes will affect your company.

Canada's Publicly Accountable Enterprises Strategy

Canada's Accounting Standards Board (AcSB) staff has updated the paper explaining which International Financial Reporting Standards (IFRS) are expected to apply on changeover to IFRS in 2011. (View the Publicly Accountable Enterprises Strategy.)

IFRS Canadian GAAP Comparison

Canada's Accounting Standards Board (AcSB) has issued an update to its comparison of International Financial Reporting Standards (IFRS) and Canadian accounting standards as of July 31, 2008. (View the IFRS Canadian GAAP Comparison.)

Canada - The IFRS Impact

The effects of the switch from Canadian GAAP to International Financial Reporting Standards (IFRS) are starting to sink in with the Canadian CA community, according to Resources Global Professionals’ third annual IFRS survey. In a poll of 273 CAs from public practice, government and industry, nearly nine in 10 (87%) said the greatest impact of the IFRS changeover will be in companies’ valuation of assets and liabilities. Respondents also said organizations should expect “somewhat” of an impact on share prices (46%), compensation plans (49%) and debt covenants (50%). In addition, a large percentage of CAs surveyed (87%) believe that a company’s reported financial results will change due to IFRS, while 72% think Canadian users of financial statements will prefer IFRS. (Read the article The IFRS Impact.)

Canada’s IFRS Advisory Committee — Report on Public Meeting

At its August 2008 meeting, Canada's IFRS Advisory Committee (IAC) discussed the Accounting Standards Board (AcSB) omnibus exposure drafts, Canadian Performance Reporting Board draft guidance regarding external communications for corporations transitioning to IFRS, a possible IFRS discussion group, and the IASB’s Discussion Paper “Reducing Complexity in Reporting Financial Instruments.” (View the Report on Public Meeting.)

Paul Cherry to chair Standards Advisory Council

The Trustees of the International Accounting Standards Committee (IASC) Foundation, the body that oversees the International Accounting Standards Board (IASB), announced today that Paul Cherry has been appointed as Chairman of the Standards Advisory Council for three years beginning January 1, 2009. Mr. Cherry is the Chairman of the Canadian Accounting Standards Board (AcSB), from which he will step down at the end of March 2009. In that role he has spearheaded Canadian work on IFRS convergence and adoption, which will culminate in the use of IFRS by public companies in Canada in 2011. Before joining the AcSB in 2001, Mr. Cherry served as a partner at PricewaterhouseCoopers in Canada and as Chief Accountant of the Ontario Securities Commission. (View the IASB Press Release.)

A Comparison of US GAAP and IFRS for Investment Companies

PricewaterhouseCoopers (PwC) has issued new research on Similarities and Differences: A Comparison of US GAAP and IFRS for Investment Companies 2008. The publication provides a general understanding of the key similarities and differences between International Financial Reporting Standards (IFRS) and the accounting principles generally accepted in the United States (US GAAP) as they apply specifically to investment companies. In addition, model financial statements have been prepared for a fictional investment fund illustrating the disclosure and presentation required by IFRS applicable to financial years beginning on or after January 1, 2008. (View the Illustrative IFRS financial statements 2008 - Investment funds.)