International Financial Reporting Standards (IFRSs)

The Accounting Standards Board (AcSB) adopted International Financial Reporting Standards (IFRSs) as Canadian GAAP for publicly accountable enterprises (PAEs) for fiscal years beginning on or after January 1, 2011.

IFRSs are issued by the International Accounting Standards Board (IASB) and represent high-quality, global accounting standards that require transparent and comparable information in financial statements and other financial reporting.

IFRSs provide more opportunities for PAEs in Canada by eliminating the need for multiple GAAP reconciliations, increasing access to international capital markets, and potentially reducing the cost of capital.

The Canadian Institute of Chartered Accountants (CICA), along with provincial institutes/Ordre is committed to supporting members and the wider business community as they learn about and use IFRSs.

Entities With Rate-regulated Activities

The AcSB decided at its March 20-21, 2012 meeting to extend the deferral of the mandatory IFRS changeover date for entities with qualifying rate-regulated activities by one more year from 2012 to 2013. Such entities now have the option to defer their changeover to IFRSs to January 1, 2013.

Investment Companies

For investment companies and segregated accounts of life insurance enterprises, the AcSB agreed to extend the option to defer their changeover to January 1, 2014 because of the timing of the related IASB project.

Government Business Enterprises

The Public Sector Accounting Board (PSAB) requires government business enterprises (GBEs) to adopt IFRSs for fiscal years beginning on or after January 1, 2011.

Private Enterprises

Private enterprises were given the option to adopt IFRSs or Canadian accounting standards for private enterprises for fiscal years beginning on or after January 1, 2011.

Private Sector Not-for-profit Organizations

Private sector not-for-profit organizations may also choose to adopt IFRSs or Canadian accounting standards for not-for-profit organizations for fiscal years beginning on or after January 1, 2012.