Wednesday, July 23, 2008

IFRS Canada - The seven questions

Are you late for another important date?

In April the Canadian Accounting Standards Board issued an Exposure Draft “Adopting IFRSs in Canada”. The Exposure Draft signaled the intention to adopt IFRSs for “publicly accountable enterprises” for fiscal years beginning January 1, 2011. A link is provided in the Exposure Draft to a PDF of the IFRS bound volume for 2007.

Comments are due by July 31 2008. Only a very few days away!
Comments are specifically requested in seven areas.
  • Do you agree with the entities to be covered? In particular take a close look at the definition of “publicly accountable”.

  • Are there any circumstances where the IFRS would “provide inappropriate results”? What are they and what are the alternatives and supporting reasoning?

  • Is there a need for interpretative guidance on the IFRSs being exposed? They want you to specify the standard and provide support for the need for interpretative guidance.

  • Will the replacement of Canadian GAAP by IFRSs for publicly accountable enterprises leave a void? If so where and how should it be filled? Is there any specific Canadian guidance required for Canadian specific issues for example? The issue of EICs and the future of interpretative guidance going forward is being considered separately.

  • Is there a need for additional exemptions on first time transition to IFRS (IFRS1)?

  • What are issues related to voluntary early adoption that the Canadian Accounting Standards Board should be aware of?

  • What are your views on the proposed elimination of disclosure requirements in the Canadian Handbook 1506.30 for the transitional changes?

    I have highly summarized the questions and you should look at the Exposure Draft carefully and the related discussion in the light of your known circumstances and industry. Do not feel constrained by the questions. The Accounting Standards Board would welcome any input.

    Please feel free to share these issues with me and I will be happy to share them with others if you so desire. I have reviewed issues dealing with a number of the above issues in this blog. These issues include the definition of publicly accountable, interpretative guidance, IFRS1 and voluntary adoption.

The Exposure Draft can be downloaded on the following page:

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