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(IAC) discussed the Accounting Standards Board (AcSB) omnibus exposure drafts, Canadian Performance Reporting Board draft guidance regarding external communications for corporations transitioning to IFRS, a possible IFRS discussion group, and the IASB’s Discussion Paper “Reducing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.)