2. Why did the AcSB adopt IFRSs?

The Accounting Standards Board made the decision to adopt IFRSs for publicly accountable enterprises following extensive consultation with stakeholders. Investors, preparers and others indicated that businesses operating and competing in global capital markets cannot afford to retain "made in Canada" reporting standards.

Because Canada comprises less than four per cent of world capital markets, IFRSs now provide more opportunities for Canadian businesses and investors by reducing the cost of capital, increasing access to international capital markets and reducing costs by eliminating the need for reconciliations.

Rapidly becoming the global language of accounting, IFRSs have been adopted by over 100 countries, including all those of the European Union and much of the Pacific Rim. In the US, the debate over whether to adopt IFRSs continues, but foreign private issuers who prepare their financial statements in accordance with IFRSs are no longer required to file reconciliations to US GAAP.