TORONTO, Oct. 23 /CNW/ - Canadian CEOs, auditors, board members and
investors now have easy access to a wealth of information about Canada's
changeover to International Financial Reporting Standards (IFRSs) through a
dedicated website called Transition to International Standards launched today
by the Canadian Institute of Chartered Accountants (CICA) and available at
www.cica.ca and at provincial CA institute sites across Canada.
The new rules will have significant impact on financial reporting for all
publicly accountable enterprises, including Canada's 4,500 publicly listed
companies. Privately owned companies can choose to use IFRSs, but will not be
required to do so. They come into effect in 2011.
The CICA is leading the way to develop a comprehensive roster of
materials, seminars, self-study options and other tools to help CAs, financial
executives, auditors and investors begin to prepare for the changeover. Now
the CICA is consolidating this knowledge in a convenient one-stop link at
www.cica.ca, which provides easy access to the resources. Visitors to
www.cica.ca or provincial CA institutes will click on the dedicated button
entitled Transition to International Standards.
"Public companies need to assess, plan and implement their approach to
the new International Financial Reporting Standards as efficiently as
possible," says Ron Salole, CICA's Vice-President, Standards. "With this new
web resource, we are offering the business community one-stop access to
courses, educational materials and background information."
The move to global financial reporting standards will place Canada on the
same reporting playing field as more than 100 countries. It will become an
essential ingredient to Canada's global competitiveness. "Many Canadian
companies need to accelerate the learning and adoption process and CICA's new
information gateway will help them get there faster," says Salole.
The website will also feature information and learning about the
transition to International Standards on Auditing, which will come into effect
December 15, 2009.
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).
THE CICA AND CANADA'S TRANSITION TO INTERNATIONAL FINANCIAL ACCOUNTING
- Canada is replacing current Canadian GAAP (Generally Accepted
Accounting Principles) with International Financial Reporting
Standards (IFRSs) for publicly accountable enterprises. For those
affected, this is the most significant change to financial reporting
in Canada in decades. The expected conversion date is January 1, 2011.
The CICA is the leader in the changeover to IFRSs through
clarification, interpretation and education for members and Canadian
- IFRSs are the collection of financial reporting standards developed by
the International Accounting Standards Board, an independent,
international standard-setting organization supported by professional
accountancy bodies from around the world, including Canada.
- Adoption of international standards recognizes the importance of
Canada's role in the global economy and puts Canada on the same
financial reporting platform as more than 100 other countries. Since
Canada comprises less than 4% of world capital markets, the transition
to IFRSs is the direction that Canadian standards must take for the
long-term competitiveness of Canadian business. IFRSs will allow
Canadian enterprises to be benchmarked against other global players
and facilitate comparability and clarity of financial statements.
- IFRSs will be mandatory for Canada's 4,500 publicly-listed companies
as well as for other organizations responsible to large or diverse
groups of stakeholders, such as securities dealers, financial
institutes and many cooperative enterprises. Private companies can
choose to use IFRSs but will not be required to do so.
- The impact of IFRSs on publicly accountable enterprises will vary.
There are many similarities between IFRSs and Canadian GAAP but there
are also some significant differences. The style and form of
individual standards are comparable and the standards are based on a
similar conceptual framework. The most significant differences between
GAAP and IFRSs for many companies, depending on their circumstances,
are likely to be in the areas of impairment, securitization, and
- You can access comprehensive IFRSs resources of the CA profession
through a one-stop web gateway at www.cica.ca or through the
provincial institute websites. Just click on the Transition to
International Standards button. Resources include training and self-
study materials, course and conference information, overview of
international experience and links to other information sources in
Canada and internationally.
For further information:
For further information: or to arrange an interview, contact: Tobin
Lambie, Media Manager, at (416) 204-3228 or e-mail at email@example.com