Canada proposes delay in adoption of IFRSs by investment companies
09 Aug 2010
As part of its project on consolidated financial statements, the International Accounting Standards Board (IASB) has announced it will propose, subject to comments received on exposure, that investment companies should be exempted from consolidation and should account for controlling interests in other entities at fair value.
Various Canadian stakeholders, including regulators and those from the investment and insurance industries, have raised concerns about whether the revised standard, including the investment company exemption, will be issued in time for the mandatory adoption of IFRSs by Canadian publicly accountable enterprises for interim and annual financial statements relating to annual periods beginning on or after 1 January 2011.
The Canadian Accounting Standards Board (AcSB) is therefore proposing that investment companies can continue to apply the current accounting standards for an additional year. Adoption of IFRSs will be mandatory for interim and annual financial statements relating to annual periods beginning on or after 1 January 2012. The AcSB decided that the proposed deferral of the IFRS changeover date should be limited to those entities expected to qualify for the IASB's proposed exemption from consolidation.
Click for:
- The AcSB's Exposure Draft (PDF 78k, link to the AcSB's website)
- Our project page on Consolidation
- Our Canada country page
The AcSB has also proposed a two-year delay in the IFRS implementation for rate-regulated activities.
