Canada – Evolution of Accounting Standards

As the end of the first decade of the new millennium draws to a close, it is time to review the current status of standard-setting activities in Canada, ponder the future and reflect on the past. A special edition of FYI Accounting Standards, a periodic newsletter issued by staff of the Canadian Accounting Standards Board (AcSB), describes the implementation of the new strategic plan for publicly-accountable enterprises, private enterprises and not-for-profit organizations.

The FYI newsletter explains the changes in the accounting standards applicable to each type of reporting entity by listing those amendments to the CICA Handbook-Accounting that took effect in 2009 or that have been issued but are not yet effective. It also notes that the AcSB expects to include International Financial Reporting Standards (IFRS) in the Handbook early in 2010. In that regard, it lists amendments to IFRS that are effective for 2009, issued but not yet effective, and expected to be issued in 2010.

Migrating to IFRS will mean significant changes to both the accounting standards and the due process for developing future standards. Lest we forget, the standard-setting processes in Canada have evolved considerably over the years (as explained in CAmagazine articles spanning the period from 1976 to 1992). The evolution continues…

IASB - Global convergence of IFRS

The goal of the IASC Foundation and the International Accounting Standards Board (IASB) is to develop, in the public interest, a single set of high quality global accounting standards. In pursuit of this goal, the IASB works in close cooperation with stakeholders around the world, including investors, national standard-setters, regulators, auditors, academics and others who have an interest in the development of high quality global standards. Progress toward this goal has been steady. Since 2001 more than 100 countries require or permit the use of International Financial Reporting Standards (IFRS), while the remaining major economies have established timelines for convergence with, or adoption of, IFRS. (Visit the IASB website for the current status of global convergence along with IFRS adoption and use around the world.)

Canada – Real-life conversations with companies preparing for IFRS

The Chartered Accountants of Canada have developed a new podcast series From the Trenches which features conversations with adopters of International Financial Reporting Standards (IFRS). Episode 1 provides insights from Marsulex Inc., a medium-sized company whose IFRS transition plan focuses heavily on Property, Plant and Equipment.

Canada – IFRS: Get to the Point

To assist small and mid-sized companies during their transition to International Financial Reporting Standards (IFRS), the Chartered Accountants of Canada have developed IFRS – Get to the Point, a series of audio presentations with slides that outline IFRS transition steps and a transition workplan. Selected resources are also provided to assist in implementing the key transition steps.

Canada – Financial Reporting Commentary on IFRS-based Interim Financial Statements

Canada’s Accounting Standards Board (AcSB) staff has issued a Financial Reporting Commentary on Interim Financial Statements in the Year of Adoption of International Financial Reporting Standards (IFRS). The first time that most publicly-accountable enterprises will provide external financial information using IFRS will be in their interim financial reports for the year of adoption of IFRS. This commentary reviews a few of the questions that might arise regarding presentation of interim financial statements in those reports.

Canada - IFRS Discussion Group Webcast

An archive of the audio webcast of the Canadian IFRS Discussion Group (IDG) first meeting on November 25, 2009 is now available. For a detailed list of the topics discussed, refer to the Meeting Agenda on Canada’s Accounting Standards Board (AcSB) website.

Deloitte - IFRS resources for 2009 year-ends

The 2009 versions of three mainstay Deloitte IFRS publications have been released:

• Deloitte's IFRS Illustrative Financial Statements for 2009. The model financial statements are intended to illustrate the presentation and disclosure requirements of IFRS.
• Deloitte's IFRS Presentation and Disclosure Checklist for 2009. The checklist is formatted to allow the recording of a review of financial statements, with a place to indicate yes/no/not-applicable for each presentation and disclosure item.
• Deloitte's IFRS Compliance Questionnaire for 2009. This questionnaire summarizes recognition and measurement requirements in IFRS issued on or before June 30, 2009 and may be used to assist in considering compliance with those pronouncements.

 

IASB - IASC Foundation issues 2010 XBRL Taxonomies

On December 9, 2009, the IASC Foundation published The IFRS Taxonomy 2010 Architecture Draft for public comment. It also published a project summary and feedback statement on Architectural Improvements to the IFRS Taxonomy. The feedback statement summarizes the architectural improvements that will be implemented in the next release of the IFRS Taxonomy in 2010 as a result of consultation conducted in July 2009. The IFRS Taxonomy 2010 Architecture Draft is the proposed architecture for both the IFRS and the IFRS for Small and Medium-sized Entities (SMEs) Taxonomies. (Read XBRL Update – December 2009.)

US - Getting to IFRS: Those who have been there have plenty of advice

When asked for their advice on how companies should be preparing for the possibility of mandated IFRS adoption in the United States, the three international financial executives kept returning to a few common themes: start now, treat it as an opportunity and make sure your entire organization is invested in the change. The executives made their remarks at the "Preparers' Perspectives" panel at the AICPA/IASC Foundation Conference on International Financial Reporting Standards (IFRS) held in New York City. (Read the article Getting to IFRS: Those Who Have Been There Have Plenty of Advice at IFRS.com)

Japan allows voluntary IFRS adoption

Japan's Financial Services Authority put pressure on the United States to adopt International Financial Reporting Standards (IFRS) after saying it would allow voluntary domestic use of the standards. Japan had been the biggest country after the US to hold out on adopting the standards. "The FSA's decision to permit domestic use of IFRS represents a first step towards a mandatory use of IFRS in Japan, and is an important milestone on the path towards global standards," said International Accounting Standards Board (IASB) Chairman Sir David Tweedie in a statement. (Read the article Japan Allows Voluntary IFRS Adoption at WebCPA.)

India Inc wary of convergence with IFRS

Making clear its commitment to converge Indian accounting norms with International Financial Reporting Standards (IFRS) by 2011, the government recently said all concerns of the industry would be addressed before convergence takes place. The industry fears that there is not enough preparedness in terms of training as far as IFRS is concerned. The Institute of Chartered Accountants of India has still not legally notified the syllabus containing IFRS and the tax implications of the convergence are still not known. (Read the article India Inc wary of convergence with IFRS at Indian express.com)

EU - CESR chairman says review of IASB governance is needed

Eddy Wymeersch, chairman of the Committee of European Securities Regulators (CESR), recently told the European Parliament's economic and monetary affairs committee that an assessment of the governance of the International Accounting Standards Board (IASB) is needed. He raised questions about the accountability of the accounting standards-setter. (Read the article EU Regulator Calls For Accounting Overhaul at The New York Times/Reuters online.)

UK - EU delays adoption of accounting rule changes

A major overhaul of accounting rules for financial instruments came into force in much of the world recently, but the European Commission decided to postpone adoption of the rules. Analysts said the changes would disproportionately hit some European banks. Other banks in Europe are upset with the decision because they are concerned they will be at a disadvantage compared with their international counterparts. (Read the article on EU delays adoption of accounting rule changes at Financial Times online.)

US - IFRS aims to level playing field but causes some concerns

The possible adoption of International Financial Reporting Standards (IFRS) by the United States is meant to level the global playing field and make it easier to compare financial statements of companies around the world. However, critics and concerned parties say that the benefits of the global accounting standards would vary considerably among different companies in the United States. (Read the article called IFRS: Jekyll or Hyde? at CFO.com.)

US – Will convergence be enough?

If efforts to merge International Financial Reporting Standards (IFRS) are successful, the idea of United States companies having to switch standards may become a non-issue. The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are trying to complete their convergence projects in 2011. (Read the article on Convergence vs. Conversion at CFO Magazine online.)

Canada - Build Your IFRS Learning Path

The Canadian Institute of Chartered Accountants (CICA) has developed an IFRS Learning Path Tool to assist interested persons in self-assessing their learning needs and developing their own individual learning path. Simply answer a short five-question survey and the tool will provide the education and training options. The resources are categorized to help navigate the wide range of IFRS learning opportunities available from the CICA, the Provincial Institutes and the Québec Ordre.

IASC Foundation / IASB website refresh

The IASC Foundation / IASB website has been redesigned. ‘Topical’ and ‘Quick links’ sections on the homepage provide short-cuts to sections of the website that receive the greatest amount of traffic. Also, the search facility has been upgraded to provide greater flexibility when searching for documents. (Read the IASB Press Release.)

Canada - PwC IFRS News, November 2009

PricewaterhouseCoopers (PwC) has issued its IFRS News for November 2009. This monthly publication provides IASB technical updates and PwC insights into the impact of International Financial Reporting Standards (IFRS). (To learn more, visit the PwC IFRS Canada website.)

UK – New ICAEW journal, By All Accounts

The Financial Reporting Faculty of the Institute of Chartered Accountants in England and Wales (ICAEW) has published the first edition of its new journal By All Accounts. The theme of this issue (dated January 2010) is IFRS for All? Financial reporting by entities of every shape and size is at a crossroads. Three articles in this issue focus on the IFRS for SMEs. Others deal with the following issues: the politics of accounting, directors' duties under the law, IFRS in transition, writing 'the front half' of the annual report, and IFRS in central government. (By All Accounts is copyright by the ICAEW and is posted on IAS Plus with their kind permission.)

Canada - Top 20 things to do before 2010

Deloitte Canada has developed a checklist covering the 20 things to do before 2010 so that publicly-accountable enterprises can keep their conversion to International Financial Reporting Standards (IFRS) on track for 2011. This checklist is designed to help a company complete its preparation before 2010 for a seamless conversion. It is also intended to help companies:

• Save money in the long run by investing the time and resources now, rather than completing the conversion on a rush basis with limiting options; 
• Prioritize actions to be included in year-end progress reports required in management's discussion and analysis (MD&A) for public companies in the fourth quarter of 2009;
• Prevent or minimize known difficulties that are commonly encountered in practice by Canadian entities;
• Motivate immediate action by emphasizing that certain tasks cannot wait until 2011.

EU - Deloitte Newsletter on IFRS 9 Financial Instruments

Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – IFRS 9 Financial Instruments. The IASB issued IFRS 9 on November 12, 2009 as the first step in its project to replace IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 introduces new requirements for classifying and measuring financial assets. Those requirements must be applied starting January 1, 2013, with earlier adoption permitted including for 2009. The IASB intends to expand IFRS 9 during 2010 to add new requirements for classifying and measuring financial liabilities, derecognition of financial instruments, impairment and hedge accounting. By the end of 2010, IFRS 9 will be a complete replacement for IAS 39 – mandatory for 2013 and optional in earlier years. This newsletter explains the requirements of IFRS 9 in detail, compares IFRS 9 and IAS 39, and analyses the potential impact of a move to the new standard.

Canada - KPMG Webcast on IFRS Conversion

KPMG will host a Webcast on IFRS Conversion: The impact of IFRS on systems and processes: what you need to know on December 10, 2009 at 11:00 AM ET. The webcast will assist companies in preparing their systems and processes for IFRS and dual reporting. Addressing the issue sooner rather than later can help save time, money and frustration in the long run. This webcast will be available for viewing online at the KPMG website starting December 16, 2009. (Register for this webcast online.)