April 2009

IFRS update: What is it and how does it affect your organization?

In 2011, the Canadian financial reporting landscape will experience a shift in regulation to better align global accounting standards between countries throughout the world.

For fiscal years beginning on or after Jan. 1, 2011, International Financial Reporting Standards (IFRS) will replace Canadian GAAP for publicly accountable enterprises.

IFRS is the collection of financial reporting standards developed by the International Accounting Standards Board.  The purpose of IFRS is to provide "a single set of high quality, global accounting standards that require transparent and comparable information in general purpose financial statements" (IFRS Handbook).  To date, IFRS standards have been implemented or permitted in almost 100 countries worldwide.

The Canadian Accounting Standards Board (AcSB) recently issued its IFRS exposure draft “Adopting IFRSs in Canada, II” and is inviting the public to comment by May 15, 2009.  In this draft, the AcSB has amended the definition of “publicly accountable enterprises,” and confirmed that pension plans will continue to report under Canadian GAAP, Section 4100 of the Canadian Institute of Chartered Accountants Handbook.  We are currently reviewing this document with our advisors, and we will continue to provide you with more information and will support your needs as they arise throughout the national transition to IFRS.

Stay tuned to the June edition of Trade Talk for another IFRS update.

By Peter Maden, vice president, institutional and pension accounting and chair, CIBC Mellon IFRS committee 

*  *  *

Trade Talk® is provided for general information purposes only and CIBC Mellon Global Securities Services Company, CIBC Mellon Trust Company, CIBC, The Bank of New York Mellon Corporation and their affiliates make no representations or warranties as to its accuracy or completeness. Readers should be aware the content of this publication should not be regarded as legal, tax, accounting, investment, financial or other professional advice nor is it intended for such use.