3. Background
Canadian GAAP is moving to IFRS (International Financial Reporting
Standards)
Effective date of transition will be 1/Jan/2011 (i.e. standards in place at that
date)
Applies to all Publicly Accountable Enterprises (i.e. public companies plus
certain private companies and public entities which are subject to regulation
or public scrutiny)
Optional for private profit-oriented enterprises (who may want to adopt to
maintain a comparable, competitive market position)
SEC will accept financial statements prepared in accordance with IFRS
U.S. is planning to transition FASB to IFRS
IFRS is a concepts-based vs. rules-based set of accounting principles
4. Implications for Investment Dealers
Likely will need to adopt IFRS for fiscal years starting on or after 1/Jan/2011
(e.g. 31/Dec/2011 year ends)
Applies to first interim financial statements (e.g. 31/Mar/2011)
Must provide full comparative financial information prepared under same
basis of accounting (e.g. 2010, which must also be reported under existing
Canadian GAAP)
Must explain significant upcoming changes in accounting principles (i.e.
note disclosure will be required starting at least in 2009)
Likely have clients who will need to adopt IFRS
May need to provide more than one type of client accounting & reporting to
meet differing client needs
5. Scope of Changes
This is not just an accounting exercise
There are likely to be implications to other areas for example:
Systems – new data requirements
Human Resources – employee long term incentive plans
Finance – debt covenant and taxation planning
Controllership – financial reporting and budget
process
Operations – policies and procedures
Investor Relations– KPI’s and dividend policy
6. Key Success Factors
Support at senior levels of organization
Structured and effective project planning
Appropriate education and training
Sufficient key resources
Complete and detailed analysis
Avoid mistake of simplistic conclusions
Many key differences are buried in the details of both Canadian GAAP and
IFRS
Need to identify and understand differences before quantifying implications
and making decisions regarding choice of accounting principle
Timely implementation
Regular, focused and effective communication
7. Key Concerns
“The Devil is in the Details”
This change will not be suitable for a “One Size Fits All” process
IFRS 1 provides a number of exemptions and limits certain choices for first-
time adopters of IFRS
Crucial to understand the implications of these before making final decisions
regarding choice of accounting principles provided under remainder of IFRS
Should ensure choice of accounting principles provides proper balance
between cost/benefit of effort and best practices
8. What Mathews Michaels Provides
Assess the Canadian GAAP to IFRS impact for your organization
Provide a detailed project plan and identify the resource requirements to
successfully get you to end of job
Establish the Change Management processes to oversee the project and
communication with all stakeholders
Work with you on key accounting policies areas and provide opinion on
industry approach
Execute project using our measurable project criteria that we will evaluate
on an ongoing basis
Provide an in house IFRS manual for your organization
If you’re not already working on it, the time to start is NOW
9. For more information on offerings and marketing materials feel free to access our
website
www.mathewsmichales.com
Thank You
10. For more information on offerings and marketing materials feel free to access our
website
www.mathewsmichales.com
Thank You
Hinweis der Redaktion
Systems – new data requirements to meet changes in accounting principle
Human Resources – implications for employee long term incentive plans
Finance–debt covenants based on current basis of accounting
–taxation planning
Controllershipfinancial reporting
–control environment
–budget process
Operations – policies & procedures
Investor Relations–KPI’s
–earnings volatility
–dividend policy