Practical accounting principles for private enterprises



    Private companies have a choice that can save them time and money

    TORONTO, May 1 /CNW/ - On April 29, The Canadian Accounting Standards
Board released its long awaited Exposure Draft on Generally Accepted
Accounting Principles (GAAP) for Private Enterprises, recognizing that 'one
size fits all' does not necessarily meet the needs of all private companies.
These proposed new standards provide a cost-effective choice for private
enterprises without compromising the quality of the financial information.
    The proposed standards would be effective for annual financial statements
relating to fiscal years beginning on or after January 1, 2011. Early adoption
would be permitted. Private companies in Canada are going to have to make an
important decision over the next few months between adopting the International
Financial Reporting Standards (IFRS) or the proposed GAAP for Private
Enterprises.
    According to Eric Andrew, national leader of PricewaterhouseCoopers'
(PwC) Private Company Services practice, "Implementing IFRS may not be very
complicated for some organisations but for others it can be a highly complex
and costly change management process that goes beyond the finance and
accounting functions. Private enterprises are going to have to examine their
options and choose a solution that best serves their purposes. We expect many
will adopt the proposed GAAP but some enterprises might choose IFRS depending
on their situation."
    The decision around which option to choose will revolve around
considering who the users of the financial statements are going to be and the
cost benefit implications.
    
    -   Private enterprises that are closely held, financed locally and are
        not planning to access public equity or debt markets will likely
        choose the GAAP option.
    -   Private enterprises that are planning to go public in the near
        future, are a subsidiary of an IFRS parent or who are benchmarked
        against peers or competitors who use IFRS might conclude they are
        better off to adopt IFRS.
    

    For more information, please visit www.pwcifrs.ca

    PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance,
tax and advisory services to build public trust and enhance value for its
clients and their stakeholders. More than 155,000 people in 153 countries
across our network share their thinking, experience and solutions to develop
fresh perspectives and practical advice. In Canada, PricewaterhouseCoopers LLP
(www.pwc.com/ca) and its related entities have more than 5,200 partners and
staff in offices across the country.
    "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP, an Ontario
limited liability partnership, or, as the context requires, the
PricewaterhouseCoopers global network or other member firms of the network,
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For further information:

For further information: Carolyn Forest, PricewaterhouseCoopers LLP,
(416) 814-5730, carolyn.forest@ca.pwc.com; Nina Godard, PricewaterhouseCoopers
LLP, (416) 941-8383 x 13520, nina.godard@ca.pwc.com

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