TORONTO, Nov. 16 /CNW/ -
What: Are Canadian companies making positive strides in their transition
to International Financial Reporting Standards (IFRS)?
According to a study conducted by the Canadian Financial
Executives Research Foundation (CFERF), the research institute of
FEI Canada, and sponsored by PricewaterhouseCoopers (PwC), the
bulk of IFRS conversions for half of the Canadian companies
surveyed are planned for 2010. Indeed, this is when those
companies had indicated they would spend the majority of their
Yet, with the January 1, 2011 deadline for Canadian companies and
the transition to IFRS looming on the horizon, many report
challenges related to staff shortages, internal systems and
identifying anticipated changes to their financial statements.
Key Survey Findings:
- Significant impact on financial statements
- 57% of companies report that they expect IFRS adoption to
have a significant impact on the reported value of their
assets. The results are higher for utilities (84%)
manufacturing, 78% and mining and oil and gas 67%.
- 25% of companies expect a significant change in the reported
value of pensions.
- 20% expect a significant change in the reported value of
their financial instruments.
- 20% expect a significant change in reported revenues.
- 20% expect a significant change in the value of goodwill.
- Disclosure of IFRS impacts expected in 2009
- 58% of public companies will be disclosing a qualitative
assessment of the impacts of IFRS conversion in their 2009
- 25% will be making disclosing both a qualitative and
quantitative assessment of the impacts of IFRS.
- Are internal systems ready to run?
- While 55% of public companies say they have not yet assessed
system implications of the changeover, 72% maintain that
they plan to run parallel manual IFRS and Canadian GAAP
financial reporting systems throughout 2010.
- Stakeholder awareness and training
- 40% of companies surveyed report they have not yet
communicated anticipated impact of IFRS on asset values with
shareholders, rating agencies or analysts.
- 82% of public companies report having begun training finance
staff about IFRS, only 41% of public companies indicated
that they had started educating their Board of Directors.
- As conversion to IFRS is not just a corporate transition,
all employees, Boards shareholders and key stakeholders must
understand the implementation process and its resulting
Complete survey results can be accessed at http://www.feicanada.org/files/IFRS_Readiness_Final_Web.pdf and www.pwcifrs.ca.
About The Canadian Financial Executives Research Foundation (CFERF)
CFERF is the research institute of Financial Executives International Canada (FEI Canada), the all-industry professional membership association for senior financial executives that provides professional development, thought leadership and advocacy services to its over 2000 members. CFERF's primary objective is to study emerging financial management issues in Canada with the aim of increasing the competitive capabilities of Canadian companies across the country. Further information can be found at www.feicanada.org.
About PricewaterhouseCoopers LLP
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 163,000 people in 151 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 5,300 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, each of which is a separate and independent legal entity.
For further information: For further information: or to schedule an interview, please contact: Carolyn Forest, (416) 814-5730, email@example.com; Caroline Spivak, (416) 371-9740, firstname.lastname@example.org