Canadian GAAP at a crossroads: Which path should private companies choose: ASPE or IFRS?

In 2011, private companies will start issuing financial reports based on either Accounting Standards for Private Enterprises (ASPE), or International Financial Reporting Standards (IFRS). Although both sets of standards are derived from the existing Canadian GAAP-based CICA Handbook – which will be phased out that same year – there are distinct differences between the two financial reporting systems. Much discussion has revolved around the more demanding disclosure requirements of IFRS; however, that’s just one of many factors private companies need to consider.


The first step in making an informed decision is analysing the business, accounting and stakeholder considerations, and the impact of choosing ASPE versus IFRS. While both sets of standards enable credible financial reporting, allowing capital providers and other stakeholders to monitor the performance of the enterprise, the choice ultimately comes down to weighing the differences between the two sets of standards against the information needs of stakeholders and intermediaries. The answer will not be the same for everyone.

(For more information, visit the Deloitte website and read Canadian GAAP at a crossroads, updated in April 2011.)

CICA seminar on integrated reporting features Robert Herz

Robert Herz, the recently retired chair of the US Financial Accounting Standards Board (FASB), will be in Toronto, Canada on November 23, 2011, for a breakfast seminar organized by the Canadian Institute of Chartered Accountants (CICA). Mr. Herz will review the proposals outlined in a Discussion Paper, Towards Integrated Reporting – Communicating Value in the 21st Century, published by the International Integrated Reporting Committee (IIRC).

The IIRC was established in August 2010 by the Prince of Wales Accounting for Sustainability Project, the Global Reporting Initiative, and the International Federation of Accountants.  The IIRC brings together a cross section of representatives from the corporate, investor, accounting, securities, regulatory and standard-setting communities.

The Discussion Paper features proposals for the development of an International Integrated Reporting Framework and outlines the next steps toward its creation and adoption. The goal of integrated reporting is to provide more comprehensive and meaningful information about how an organization creates and sustains value.

(For more information, see the CICA media release on November 18, 2011.)