Evaluating the Choices in Applying IFRS 1

Canadian publicly accountable entities should now have commenced their evaluation of the effects on their organization of adopting International Financial Reporting Standards (IFRS). A key step in that evaluation is to study IFRS 1, First-time Adoption of International Financial Reporting Standards. Application of IFRS 1 will greatly assist IFRS adoption, but it also requires evaluation of accounting policy choices. There are a number of considerations Canadian entities should take into account in applying IFRS 1. (Read Evaluating the Choices in the latest issue of CAmagazine.)

Assisting Clients in the Transition to IFRS

There are many areas where the auditor can assist clients in the transition to IFRS. Such assistance may include: IFRS training for client staff; commenting on areas where changes in accounting policy or disclosure are likely; assisting with preliminary diagnosis of the impact on financial reporting and accounting systems; providing technical advice on IFRS standards; discussing transition project scope and governance issues; and providing assurance services on internal IFRS financial statements. (Read about Assurance Issues in the latest issue of CAmagazine.)

Countdown - Deloitte Canada’s IFRS transition newsletter

Deloitte Canada has issued the October 2008 issue of its Countdown IFRS newsletter. In addition to providing a snapshot of the current state of Canada's transition to IFRS, this newsletter focuses on: Credit crunch – economic slowdown driving IFRS accelerated changes; Acquisition accounting under IFRS – merger and acquisition strategy considerations; Release of iGAAP 2008 – IFRS for Canada; and An update on current IFRS events.

IASB guidance on fair value measurement

The International Accounting Standards Board (IASB) has published guidance on the application of fair value measurement when markets become inactive. The guidance includes a summary document prepared by IASB staff and the final report of the expert advisory panel established to consider the issue. It takes into consideration recent documents issued by the US Financial Accounting Standards Board (FASB) on October 10, 2008 and by the Office of the Chief Accountant of the US Securities and Exchange Commission (SEC) and FASB staff on September 30, 2008. (Read the IASB press release, IASB staff summary and the final report of the IASB Expert Advisory Panel.)

AICPA - IFRS Primer for Audit Committees

According to the AICPA, convergence of US GAAP with IFRS is happening. In addition, there is a possibility that the SEC will give US companies an option to follow IFRS rather than US GAAP, or require them to switch to IFRS, before convergence is achieved. Audit committees should anticipate this significant change and inquire of the CEO and CFO as to the readiness of the company and their implementation plan for moving to IFRS if/when required. (Visit the AICPA IFRS Resources or read the AICPA IFRS Primer for Audit Committees.)