Changes in Canadian Reporting - Are You Ready

Changes in Canadian Reporting - Are you Ready?

Mark Stevenson - Friday, July 01, 2011

All Canadian companies must convert to one of two new standards in presenting their financial statements for fiscal reporting periods commencing on or after January 1, 2011:

International Financial Reporting Standards (IFRS)
Accounting Standards for Private Enterprises (ASPE)

Calendar year Canadian public companies must prepare and report Q1 2011 interim financial statements for the quarter ending March 31, 2011, which is fast approaching, using IFRS and that period will mark the first date that those public companies must now file such statements.

Private enterprises, which are defined as profited-oriented entities that are not a publicly accountable enterprise (who are already required to use IFRS) can chose between adopting IFRS or ASPE, for fiscal reporting periods commencing on or after January 1, 2011.

Has your company or reporting entity made a decision how to report yet? Most private companies will use ASPE, but they do have an option to choose IFRS. ASPE’s disclosure requirements are far less onerous and complex than IFRS. Some factors to consider, before making a decision:

Do you plan to take your company public, which would require IFRS reporting?
Do any lenders, investors, potential lenders or investors or other stakeholders require IFRS reporting?
Do any of your competitors use IFRS?

Answering yes to any of the above questions may take you down a path to using IFRS.

If you have any questions, please contact us or feel free to leave a comment and let us know what direction you are taking and why. .

Trackback Link
http://www.financematters.ca/BlogRetrieve.aspx?BlogID=7187&PostID=201563&A=Trackback
Trackbacks
Post has no trackbacks.