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There are many similarities between IFRS & Canadian GAAP, but there are also significant differences. There will be some major changes to financial reporting, which have the potential to impact stakeholders considerably; planning and communication is critical to managing the change. Resources are available for comparing Canadian GAAP to IFRS. Generally, Canadian GAAP and IFRS are very similar in terms of the style and form of the individual standards, and the fact that the standards are based on a similar conceptual framework. However, in addition to some pervasive differences, there are many subtle differences in the details, the significance of which will vary by industry and individual organization. The three areas of IFRSs considered to create the most significant changes from Canadian GAAP are: - Impairment – Under IFRSs impairments will generally be triggered more often but unlike Canadian GAAP, impairments under IFRS can be reversed
- Securitization – IFRSs are fundamentally different in this area from Canadian standards
- Revaluations – Some IFRSs including Property, Plant and Equipment,Investment Property and Intangibles allow the re-valuation of assets under certain circumstances.
It is important to remember that the areas within IFRS that may create significant changes (from accounting policies under Canadian GAAP) will depend on an organization’s individual circumstances. |
