2009 Financial Reporting in Canada Under IFRS

The Canadian Institute of Chartered Accountants (CICA) has recently published 2009 Financial Reporting in Canada Under IFRS. This publication (1,248 pages) aims to help preparers of financial statements, as well practitioners and students, obtain a better understanding of International Financial Reporting Standards (IFRS). It looks at IFRS from a Canadian perspective by examining and explaining IFRS requirements. It illustrates their application using extracts from financial statements of companies that have already adopted IFRS and discussing how those requirements differ under Canadian GAAP.

United States - Countdown to Codification Alert

The US Financial Accounting Standards Board (FASB) is sponsoring a series of weekly "Countdown to Codification" alerts. On July 1, 2009, FASB is instituting a major change in the way accounting standards are organized. On that date, the FASB Accounting Standards Codification is expected to become the single official source of authoritative, nongovernmental US generally accepted accounting principles (GAAP). After that date, only one level of authoritative GAAP will exist, other than guidance issued by the Securities and Exchange Commission (SEC). The FASB Codification is designed to make it easier to research accounting issues, but advance training is required to use the Codification. The weekly "Countdown to Codification" alerts will make that training easier. The FASB offers a free online tutorial as well as a recorded instructional webcast—The Move to Codification of US GAAP.

Canada - Income Tax Exposure Draft (April 2009)

Canada's Accounting Standards Board (AcSB) has issued an Exposure Draft proposing to replace the existing IFRS income tax guidance with a new standard recently proposed by the International Accounting Standards Board (IASB). The new income tax standard will apply to publicly accountable enterprises at changeover to IFRS. Comments are requested by July 31, 2009. (Read and comment on the Income Tax Exposure Draft - April 2009.)

Canada - decision on fair value and impairment of debt securities

Canada's Accounting Standards Board (AcSB) confirmed, following a special meeting, that the recent US guidance on determining the fair value of financial instruments is consistent with Canadian standards. The guidance deals with determining whether a market is inactive and whether a transaction is a distressed sale. The AcSB also decided to revise its standards on impairment of debt instruments to converge with international standards. It strongly supports the work of the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) to develop a new international standard on measurement and recognition of financial instruments. (Read the Accounting Standards Board Media Release.)

Canada - Transition to International Financial Reporting Standards

Regarding the transition to International Financial Reporting Standards (IFRS), Canada's Accounting Standards Board (AcSB) has reviewed the comments received at the roundtable that took place on April 20, 2009 in Montreal. After considering the input received about the challenges of adopting IFRS, the AcSB concluded that there were no compelling arguments that would require delaying the changeover date. It reconfirmed that Canadian GAAP for publicly accountable enterprises will be IFRS for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. (Read the Accounting Standards Board Decision Summary - April 29, 2009.)