CESR addresses equivalence of GAAP of third countries to IFRS

In accordance with the mandate of the European Commission, the Committee of European Securities Regulators (CESR) has published its advice on a mechanism for determining equivalence of the generally accepted accounting principles of third countries to IFRS. CESR also suggests the European Commission consider extending the existing transitional measures for those countries currently converging to IFRS, if certain conditions are met. Should the Commission adopt such transitional measures, CESR recommends they not be extended beyond 2012. The press release and final advice are available online.

Adopting International Financial Reporting Standards in Canada

A presentation that provides a broad overview of matters to be aware of leading up to Canada’s convergence with International Financial Reporting Standards (IFRS) for publicly accountable enterprises has been posted (view slides or audio presentation)

IFAC global survey on financial reporting

The International Federation of Accountants (IFAC) has invited all participants in the financial reporting supply chain (including investors and other users of financial reports, standard setters, preparers, auditors, academics and regulators) to complete a global survey designed to obtain information that could strengthen the financial reporting process. The survey is open until July 6, 2007. It is part of an IFAC project to develop recommendations for improving the quality of corporate governance, financial reporting (including IFRS) and financial auditing. It will also include in-depth one-on-one interviews. Participants are asked to complete the survey online (www.ifac.org/financialreportingsurvey/).

United States and Japan discuss global convergence to IFRS

The Financial Accounting Standards Board (FASB) recently met with the Accounting Standards Board of Japan (ASBJ) in Tokyo to discuss their shared pursuit of global convergence of accounting standards. Representatives of both Boards agreed that their ongoing discussions are useful in promoting mutual understanding that will contribute to subsequent deliberations and to their respective convergence projects with the IASB. They agreed to continue exchanging views on longer-term issues and current concerns (view FASB press release).

Implications of moving to IFRS for existing Canadian/US GAAP differences

The document, Implications of moving to IFRSs for existing Canadian/US GAAP differences, has been prepared by the staff of the Accounting Standards Board (AcSB) to provide a high level summary of the extent to which convergence of Canadian standards with International Financial Reporting Standards (IFRS) could be expected to eliminate existing differences between Canadian and US GAAP, or create new differences. Its purpose is to provide readers of the AcSB’s “Implementation Plan for Incorporating International Financial Reporting Standards into Canadian GAAP” with information about the extent to which the move to IFRS will reduce or increase conflicts with US GAAP compared with those that exist currently between Canadian standards and US GAAP.