TORONTO, Feb. 8 /CNW/ - Canada's Chartered Accountants are responding to
the needs of corporate board members to help them better understand and
prepare for the country's transition to International Financial Reporting
Canada's transition to IFRS is due to take effect in 2011. Board and
audit committee members are being urged to begin now to address the
implications of conversion. IFRS will become the basis of reporting for public
companies in this country, replacing Canada's own Generally Accepted
Accounting Principles (GAAP.) To help board members frame the issue and
address key considerations, the Canadian Institute of Chartered Accountants
(CICA) has prepared a special document titled 20 Questions Directors and Audit
Committees Should Ask About IFRS Conversions.
"It is crucial for all directors to have a general understanding of what
the changeover will mean for their organization," said Kevin Dancey, FCA,
President and CEO of the CICA. "The document provides suggested questions for
boards to ask of themselves, senior management and others."
The move to international standards will place Canada on the same
reporting playing field as more than 100 other countries. The new accounting
standards will assist Canadian companies by reducing the cost of capital,
increasing access to international capital markets and eliminating the need
for country-to-country reconciliations.
"Responsibility for executing the conversion to IFRS rests with
management and it will be the board's responsibility to play an oversight
role," said Dancey. "Our document is designed to help directors, especially
audit committee members, understand the potential scope of the transition.
This involves consideration not only of the conversion process itself but of
issues relating to risk, stakeholder relations, financial reporting and
internal controls which will be triggered by the transition."
The 20 Question document was commissioned by the CICA's Risk Management
and Governance Board and can be found on the Institute's IFRS focused web site
The Canadian Institute of Chartered Accountants (CICA), together with the
provincial, territorial and Bermuda Institutes/Ordre of Chartered Accountants,
represents a membership of approximately 72,000 CAs and 10,000 students in
Canada and Bermuda. The CICA conducts research into current business issues
and supports the setting of accounting, auditing and assurance standards for
business, not-for-profit organizations and government. It issues guidance on
control and governance, publishes professional literature, develops continuing
education programs and represents the CA profession nationally and
internationally. CICA is a founding member of the International Federation of
Accountants (IFAC) and the Global Accounting Alliance (GAA).
For further information:
For further information: or to arrange an interview, contact: Tobin
Lambie, Media Manager, CICA, (416) 204-3228, firstname.lastname@example.org