IFRS

As enterprises extend their global reach, and even small enterprises begin to take their business worldwide, the importance of uniform financial reporting is even more apparent. Discrepancies between financial reports for different regions are less acceptable, and in recent years a call has been made for financial reporting to be harmonized. As such the adoption of International Financial Reporting Standards (IFRS) is becoming paramount around the world.

In March 2006, the Accounting Standards Board (AcSB) adopted a strategic plan calling for the adoption of IFRSs by publicly accountable enterprises in Canada. IFRSs are globally accepted, high quality standards which are issued by the International Accounting Standards Board (www.iasb.org). IFRS applies to general purpose financial statements of profit oriented enterprises.

The AcSB has tentatively concluded that a profit-oriented enterprise has public accountability unless it:

• has not filed, and is not in the process of filing, its financial statements with a securities commission or other regulatory organization for the purpose of issuing any class of instruments in a public market; and
• does not hold assets in a fiduciary capacity for a broad group of outsiders.

On February 13, 2008, the AcSB confirmed the changeover date is January 1, 2011. Therefore the first annual financial statements impacted will be December 31, 2011 and the first quarterly statements impacted will be the three months ended March 31, 2011.

Our assurance professionals are ready for the transition to IFRS and will ensure we continue to offer high quality audit services. The training that our professionals are undergoing allows us to provide consulting and advisory services for enterprises, allowing them to become IFRS compliant. BDO professionals are constantly on top of the latest information and procedures involved in the transition to IFRS, in order to provide the best possible services to our clients.

For more information, or to speak with a BDO professional, please contact us at ifrs@bdo.ca.