May 2008: Disclosure of expected changes in accounting policies
The Canadian Securities Administrators (CSA) have just released a staff notice addressing IFRS pre-adoption disclosure requirements for Canadian reporting issuers. CSA Staff Notice 52-320 Disclosure of Expected Changes in Accounting Policies Relating to Changeover to IFRSs marks another significant step in Canada's transition to IFRSs. This will help companies assess the expected impact on their next interim and annual Management's Discussion and Analysis. Deloitte (Canada) will provide a more comprehensive analysis of these disclosure requirements in the next edition of the Countdown newsletter. Full details of the proposed timing, nature and extent of the disclosures can be found in the press release issued by the CSA:
May 2008: Canadian financial institutions may not early-adopt IFRSs
Although the Canadian Securities Administrators have invited comment on whether to permit publicly accountable Canadian entities to adopt IFRSs starting in 2009 – two years earlier than would be required by the Canadian Accounting Standards Board – the Canadian Office of the Superintendent of Financial Institutions (OSFI) has issued a Notice to All Federally Regulated Financial Institutions (FRFIs) (PDF 33k) instructing them not to adopt IFRSs early, mainly for regulatory comparability reasons. There are nearly 500 FRFI's in Canada. The OSFI notice states:
- All FRFIs are considered publicly accountable enterprises and must adopt IFRSs as required in AcSB's plan for fiscal years beginning on or after 1 January 2011.
- No early adoption will be allowed for FRFIs.
- All FRFIs must submit a semi-annual progress review on their plan to adopt IFRSs to OSFI within 30 days of the end of the period.
April 2008: Deloitte Canada Countdown IFRS transition newsletter – April 2008
Deloitte Canada has released the April 2008 issue of their Countdown IFRS transition newsletter, to provide a snapshot of where we are now as far as Canada's transition to IFRSs is concerned – both in Canada and in Deloitte. This issue of Countdown focusses (a) the proposed definition of Publicly Accountable Enterprises (PAEs) in order to help entities determine whether they are 'in or out' of IFRSs; (b) commentary on certain legal implications to enterprises transitioning to IFRSs; and an update on current IFRS events. Click to download:
April 2008: Deloitte Canada Countdown IFRS transition newsletter – Special Edition
Deloitte Canada has released a special issue of their Countdown IFRS transition newsletter, to provide a snapshot of where we are now as far as Canada's transition to IFRSs is concerned – both in Canada and in Deloitte. This issue of Countdown focusses on comments from the chair of the Canadian Accounting Standards Board (AcSB); information about AcSB's new omnibus exposure draft Adopting IFRSs in Canada; an interview with Ian Hague of the AcSB staff regarding the transition to IFRSs; and IFRS events. Click to download:
March 2008: Deloitte Canada Countdown IFRS transition newsletter – March 2008
Deloitte Canada has released the second issue of a new Countdown IFRS transition newsletter, to provide a snapshot of where we are now as far as IFRS is concerned – both in Canada and in Deloitte. This issue of Countdown focusses on the initial stages of IFRS implementation to help Canadian companies determine their priorities. Articles cover the transition journey: where are we now?; IFRS implementation planning; conversion activities; conference activities (including a 14 April 2008 webcast on IFRSs in Canada); and IFRS impacts beyond financial reporting. Click to download:
February 2008: Deloitte Canada Countdown IFRS transition newsletter – February 2008 (Inaugural Issue)
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Deloitte Canada has released its first issue of a new Countdown IFRS transition newsletter, to provide a snapshot of where we are now as far as IFRS is concerned – both in Canada and in Deloitte. This issue includes a convergence timeline for a calendar year entity and links to various Deloitte IFRS convergence activities. Future issues will focus on updates on IFRS convergence in Canada, related Deloitte activities, technical briefings, and tips and tools to assist Canadian companies and others in the IFRS transition. Click to download:
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February 2008: Canada confirms 2011 as transition date to IFRSs
The Canadian Accounting Standards Board (AcSB) has confirmed that use of International Financial Reporting Standards (IFRSs) will be required in 2011 for publicly accountable profit-oriented enterprises. IFRSs will replace Canada's current national GAAP for those enterprises. These include listed companies and other profit-oriented enterprises that are responsible to large or diverse groups of stakeholders. The official changeover date is for interim and annual financial statements relating to financial years beginning on or after 1 January 2011. Private companies (non-publicly accountable enterprises), and not-for-profit organisations are not required, but are permitted, to adopt IFRSs in 2011. Click for AcSB Press Release (PDF 50k).
February 2008: IFRS concept paper from Canadian securities regulators
The Canadian Securities Administrators (CSA) – the consortium of the provincial securities regulators in Canada – has invited public comment on CSA Concept Paper 52-402. The Concept Paper discusses securities regulation issues relating to Canada's upcoming adoption of IFRSs. The Accounting Standards Board (AcSB) of Canada proposes to that all Canadian publicly accountable enterprises must adopt Canadian IFRS equivalents by 1 January 2011. As CSA rules refer to Canadian generally accepted accounting principles established by the AcSB, the CSA is considering the need for amendments to those rules and is seeking feedback on three main issues:
- Use of IFRSs by domestic issuers before 1 January 2011. CSA members are leaning toward allowing the use of IFRSs starting in 2009, two years ahead of the AcSB's mandatory changeover.
- Use of US GAAP by domestic issuers. Currently, Canadian companies that are registered with the US SEC are allowed to use US GAAP rather than Canadian GAAP. The CSA members have tentatively concluded not to allow a domestic issuer to use US GAAP starting in 2009 except existing US GAAP users could continue doing so for up to five years (that is, through 2013).
- Reference to IFRSs instead of Canadian GAAP in CSA securities rules. The AcSB's current plan is to import IFRSs into Canadian GAAP and to continue using the term 'Canadian GAAP'. The CSA members do not agree with that terminology and believe that the auditor's report should refer to IFRSs as adopted by the IASB rather than to Canadian GAAP. CSA acknowledges that changes to some laws may be required.
Comments on the Concept Paper should be sent by 13 April 2008. Click to download:
August 2006 – Implementation Plan
In January 2006, the Accounting Standards Board of Canada (AcSB) adopted its Strategic Plan for the Direction of Accounting Standards (PDF 139k). The Plan includes the decision to move financial reporting for Canadian publicly accountable enterprises to a single set of globally accepted high-quality standards, namely, International Financial Reporting Standards (IFRSs), as issued by the International Accounting Standards Board (IASB).
The AcSB has now published a more detailed Implementation Plan for Incorporating International Financial Reporting Standards into Canadian GAAP (PDF 373k). The Implementation Plan identifies key decisions that the AcSB will need to make as it implements the Strategic Plan for publicly accountable enterprises. Although the Implementation Plan may be revised and updated as circumstances warrant, currently it envisions 2010 as the last year that publicly accountable enterprises will report under current Canadian GAAP and 2011 as the first year of reporting under a complete set of IFRS-based Canadian standards. Because some current Canadian standards are already IFRS-based, and because others will become IFRS-based before 2011, the changeover to IFRS-based Canadian standards is likely to be more gradual, rather than abrupt, for most enterprises.
August 2006 – Implementation Advisory Committee Holds First Meeting
On 16 August 2006, the IFRS Advisory Committee of the CICA held its first meeting and discussed the Accounting Standards Board (AcSB) Implementation Plan, including the definition of a publicly accountable enterprise, regulatory issues and disclosure. Click for an Summary of Discussions at the Meeting (PDF 28k).
Future meetings of the IFRS Advisory Committee will be held on:
- 3 November 2006
- 18 December 2006
- 3 May 2007
- 28 June 2007
January 2006 – Strategic Plan
In January 2006, Canada's Accounting Standards Board (AcSB) ratified a new Strategic Plan for the Direction of Accounting Standards (PDF 139k) that will significantly affect the way financial reporting will be carried out in Canada in the future. The AcSB will pursue separate strategies for three major categories of reporting entities: public companies, private businesses and not-for-profit organisations.
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- For public companies, the AcSB's objective is to move to a single set of globally accepted high-quality standards. The AcSB has concluded that this objective is best accomplished by converging Canadian GAAP with International Financial Reporting Standards (IFRSs) over a transitional period. Australia and the European Union have already adopted IFRS and other countries have convergence programs underway. The AcSB will develop and publish a detailed implementation plan for achieving convergence later this year. The AcSB expects that the transition period will take approximately five years, but the precise timing will depend on many factors, and will be continuously monitored throughout the process. At the end of that period, Canadian GAAP will cease to exist as a separate, distinct basis of financial reporting for public companies.
- For private businesses, the AcSB has begun, as a matter of urgency, a comprehensive examination of their financial reporting needs and will determine the most appropriate model for meeting those needs.
- For not-for-profit organisations, the AcSB will continue to apply those elements of GAAP for profit-oriented enterprises that are applicable to their circumstances, and develop other standards dealing with the special circumstances of the not-for-profit sector.
The AcSB recognises that some Canadian public companies that have significant market followings in the United States might prefer to use US GAAP. The Canadian Securities Administrators already permit those Canadian public companies that are SEC registrants to use US GAAP instead of Canadian GAAP.
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April 2005 – Invitation to Comment on Draft Strategic Plan
In April 2005, the Canadian Institute of Chartered Accountants' Accounting Standards Board (AcSB) issued an Invitation to Comment on its draft strategic plan Accounting Standards in Canada: Future Directions. The draft plan includes the AcSB's proposal to follow separate strategies for public companies, private businesses, and not-for-profit organisations.
February 2005
On 10 February 2005, the AcSB made a presentation to its oversight body, the Accounting Standards Oversight Council, outlining its vision of the future of accounting standards in Canada. Broadly described, AcSB's proposal – which must be considered by the AcSB's constituents and by Canadian regulators – would involve adopting IFRSs in full as Canadian GAAP while allowing those entities that want to do so to use US GAAP. The transition to IFRSs would be made over a five-year period. The AcSB proposals would be set out in a new invitation to comment that is expected to be published by 31 March 2005.
September 2004 – Invitation to Comment on Accounting Standards in Canada
In September 2004, the Accounting Standards Board of Canada published an invitation to comment on its five-year plan for the period 2005-2010. The possibility of adopting IFRSs in Canada was one possible outcome. The invitation identified four key issues – whether Canada should:
- maintain its own standard-setting capability;
- maintain its own GAAP or adopt either US GAAP or International Financial Reporting Standards (IFRSs), the standards of the International Accounting Standards Board (IASB);
- maintain the current strategy of working to support the international convergence of accounting standards while harmonizing with US GAAP; and
- consider modifying current GAAP requirements to provide better information to the users of financial statements of various different types of entities through, for example, a wider application of differential reporting.
October 2007: CICA website on transition to IFRSs and ISAs
The Canadian Institute of Chartered Accountants has launched a New Website that Focuses on Transition to IFRSs and ISAs. It can be accessed through the Transition to International Standards icon located below the menu in the left column of the CICA Home Page www.cica.ca, and from the homepages of the Canadian provincial institutes. CICA developed the new website to help its members prepare for a smooth and effective transition:
- from Canadian GAAS to International Standards on Auditing (ISA) for periods after December 15, 2009
- from Canadian GAAP to International Financial Reporting Standards (IFRS) for publicly accountable enterprises for periods beginning on or after January 1, 2011; and,
- to a new strategy for Financial Reporting by Private Enterprises.
May 2007 – Updated plan for incorporating IFRSs into Canadian GAAP
In May 2007, the Accounting Standards Board of Canada published an update to its Implementation Plan for Incorporating International Financial Reporting Standards into Canadian GAAP. The plan envisions a changeover to the new standards of 1 January 2011. The plan includes a comparison of IFRSs and Canadian standards as of 31 March 2007, as well as the AcSB's expectations as to which IFRSs are likely to be adopted in Canada before the changeover to IFRSs for publicly accountable enterprises. Click to download:
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