Canada's AcSB proposes an optional one year deferral from IFRS adoption for certain rate-regulated entities
The Canadian Accounting Standards Board (AcSB) has announced a decision to defer for an additional year the mandatory adoption of International Financial Reporting Standards (IFRSs) for qualifying entities with rate-regulated activities.
The additional, optional one year deferral would push back the mandatory IFRS changeover date from 1 January 2012 to 1 January 2013.
Deferral is optional; entities will still be permitted to adopt IFRSs in 2012. Entities that choose to defer application of IFRSs until a later date will continue to apply Part V of the Canadian Institute of Chartered Accountants Handbook.
The reasons for the deferral are set out in the Accounting Standards Board Decision Summary for its 20-21 March 2012 meeting which can be accessed by clicking here. This deferral will only be applicable once it has been included in the CICA Handbook in the May 2012 update.
Entities considering whether this deferral may be appropriate for them should consider the following:
- It does not appear that the deferral will be available to reporting issuers filing with securities commissions as the dates for IFRS adoption are specified in National Instrument 52-107, to which changes are not expected in the short term.
- In addition, filings made (or in process) with regulators for rate setting purposes will need to be considered, especially to the extent that they have been prepared on an IFRS or IFRS related basis.
Going forward, all interested parties will need to remain focused on any developments at the International Accounting Standards Board level. Developments at the international level will no doubt continue to impact the longer term outcome for financial reporting by rate regulated entities in Canada