Seamless conversion to IFRS
Most publicly accountable enterprises in Canada have now implemented IFRS as their new financial reporting standards and are now reporting under IFRS. However, the transition process has not ended. Entities are now facing the challenge of applying IFRS on a day-to-day basis and preparing for numerous upcoming IFRS changes.
IFRS in movement
Between now and 2016, the International Accounting Standards Board’s (IASB) schedule includes over thirty new projects, affecting almost all standards. It will therefore be difficult for entities to escape from this second series of changes.
More specifically, the expected projects which will have a significant impact are related to the following:
- Consolidation principles (effective starting in 2013)
- Leasing arrangements (anticipated application in 2016)*
- Revenue recognition (anticipated application in 2015) *
- Financial instruments (effective starting in 2015)*
*Application dates could be further modified by the IASB.
In essence, this represents a second transition, with changes that will impact business processes beyond accounting matters. Companies will have to review their strategic growth and financing plans, develop new assessment techniques (provisions, leasing, financial assets), and modify their procedures and information systems.
For additional information on current IASB projects and timelines, you can consult the IASB website by clicking here.
It will be imperative for management to have a clear understanding of how upcoming accounting changes will impact not only financial reporting processes and controls, but also performance ratios, short to medium-term strategic plans for the business, operational structures, employee training and development, and existing IT systems and processes.
We can help you by providing you with expertise through our extensive, diverse and industry-focused experience and offer you a multidisciplinary approach and team, with the ability to meet specific needs on a local or global scale.
Our services include:
- Complete diagnostic of impacts of upcoming changes, including simulations
- Implementation plan set-up and project management
- IFRS technical accounting assistance
- IFRS training and updates
- Assistance in updating control procedures and system changes
Furthermore, ensuring that today’s financial statements adhere to IFRS is an increasingly difficult task to undertake without qualified resources. Our knowledgeable group of professionals can help alleviate the accounting burden of transactions such as mergers and acquisitions, spin-offs or carve-outs, or for specific transactions such as collaboration agreements, investments in other entities, revenue recognition, lease agreements, financial instruments and hedging, to name only a few--that way you can focus on the business aspect of these transactions. We can assist you in analyzing and understanding the accounting implications of these transactions and determining the impact on your financial statements.
Our services include:
- Assistance in determine the accounting treatments of complex transactions
- Preparation of accounting opinions
- Support to your finance team as they prepare your financial statements
- Advice on selection of accounting principles and/or application of complex standards
- Review of financial statements to ensure completeness and compliance
Contact our IFRS team leader below to learn more about how we can help you. Learn about other services our professionals of the Financial Reporting Advisory Group may offer to your organization.