TORONTO, Dec. 19 /CNW/ - Canada's Chartered Accountants (CAs) have a
suggested New Year's resolution for the business leaders of this country's
publicly traded companies. Those businesses are being urged to ensure that
preparation for the changeover to international accounting standards be an
essential element of any corporate plan for 2008.
Canada's transition to International Financial Reporting Standards (IFRS)
is anticipated to take effect in 2011 and will significantly impact financial
reporting for all publicly accountable enterprises, including this country's
4,500 publicly listed companies.
"Businesses increasingly make decisions in a global context and the move
to international standards will place Canada on the same reporting playing
field as more than 100 other countries," said Ron Salole, Vice-President,
Standards, with the Canadian Institute of Chartered Accountants (CICA). "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 reconciliations."
Indications from a variety of sources are that while some progress is
being made in preparation for the changeover, a significant amount of work
remains to be done.
"Planning for the move to international accounting standards would be an
ideal corporate New Year's resolution," stressed Salole. "The clock is ticking
and we urge companies to start now to gauge the scope and complexity of these
changes on their businesses. Global experience clearly demonstrates that the
earlier organizations begin implementation, the smoother the transition."
Salole suggested that companies appoint a project team, learn more about
the international standards, assess the impact on the business and then draft
a plan. For those companies that have already initiated planning, Salole
applauded their efforts and encouraged them to keep going.
Earlier this year, the CICA launched a dedicated on-line information
source called Transition to International Standards that can be accessed
through its web site (www.cica.ca) or through those of the provincial
institutes across Canada. This one-stop information site offers a variety of
resources to assist individuals and companies through the transition process.
In addition, the CICA recently held two IFRS related courses and more are
planned for 2008. The coming year also will see the CICA and International
Accounting Standards Committee Foundation host a major conference on IFRS in
Toronto from April 23-25.
"We are committed to ensuring that Canadian individuals and businesses
are well equipped for this change," said Salole.
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