TORONTO, Sept. 25 /CNW/ - Publicly accountable enterprises in Canada
should note that the International Accounting Standards Board (IASB) today
issued an exposure draft aimed at facilitating the transition to International
Financial Reporting Standards (IFRS).
If adopted, the proposed amendments to IFRS 1 will greatly assist the
adoption of international standards for Canadian enterprises, especially oil
and gas companies and entities with operations subject to rate regulation.
IFRS will replace Canada's current Generally Accepted Accounting
Principles (GAAP) for publicly accountable enterprises for interim and annual
financial statements relating to years beginning on or after January 1, 2011.
In the case of enterprises using full cost accounting or with operations
subject to rate regulation, restating past financial reporting to be IFRS
compliant could be difficult, and provide little, if any, benefit to users of
financial statements. If adopted, the IFRS 1 proposals would provide relief
for enterprises in such circumstances.
"We welcome this relief and encourage Canadian oil and gas companies and
others to pay close attention to these international proposals" said Paul
Cherry, Chair, Canadian Accounting Standards Board (AcSB). "Our staff worked
closely with interested parties, including industry and analysts, in proposing
such measures to the IASB. The result clearly demonstrates that Canadian
voices will continue to be heard globally with the changeover to IFRS."
The proposals also recommend transitional assistance relating to
classification of leases.
"Canadian companies should make consideration of the IFRS 1 proposals an
important part of the planning process for the transition to IFRS," said
Cherry. "The earlier companies prepare for the changeover to IFRS, the better
chance it will be a seamless transition."
The proposals will be available at www.iasb.org, with comments requested
by January 23, 2009. Canadian stakeholders should comment on the proposals
directly to the IASB. Comments are welcome in support of the proposals, as
well as suggesting any need for modifications.
The Accounting Standards Board establishes financial accounting and
reporting standards for use by Canadian companies and not-for-profit
organizations. It also participates in the development of internationally
accepted accounting standards. The Board sets its financial accounting and
reporting standards after an extensive process of consultation with
organizations and individuals that are interested in or affected by the
standards. The standards contribute to enhanced decision making by
continuously improving the quality of financial and other information about
organizational performance reported by Canadian entities.
For further information:
For further information: or to arrange an interview, contact: Tobin
Lambie, CICA Manager, Media, (416) 204-3228, firstname.lastname@example.org