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Are you IFRS-ready?  The conversion to IFRSs represents one of the most significant changes in Canadian financial reporting history. Understanding the financial and non-financial reporting impact, the IFRS conversion project itself and other IFRS-related considerations is critical to audit committee members and directors. While audit committee members are required to have a detailed understanding on various aspects of the IFRS conversion, directors also need a general understanding of what the IFRS conversion means to their company. This page provides relevant information to assist in this understanding. Although this page is geared toward audit committee members, it also provides a solid foundation for directors. What IFRS questions do I need to ask as an Audit Committee member?* | Conversion Project Considerations | | Financial Reporting Considerations | | Non-Financial Reporting Considerations | | Other Board Considerations | What will converting to IFRSs mean for our business? How do we plan to approach the conversion to IFRSs? What are the key areas to address during the conversion? What is the timeline, resources and costs What can we learn from the EU conversion experience?
| | - How does the IFRS conversion impact external reporting?
- What is the impact on internal reporting?
- How is the need for 2010 Canadian GAAP and IFRS information being addressed?
- What are our peers doing?
- Do we need to apply IFRSs throughout the whole group structure
- How does IFRSs impact tax?
| | - What other business areas are impacted by the conversion?
- Can our IT system handle the IFRS information needs?
- What IFRS training is being provided?
| | What are the significant risks related to the IFRS conversion? Any other key risks related to the conversion? What are the opportunities created by the conversion? Impact on stakeholders and how to manage expectations. What is the role of our auditor and do we need an independent advisor? Other – Implications for Boards/Audit Committee and Director/Officer
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* From the CICA publication by Rafik Greiss and Simon Sharp – 20 Questions Directors and Audit Committees Should Ask about IFRS Conversions. Refer to this publication for further information.
How much do I need to know about IFRSs as an Audit Committee member? The Canadian Securities Administrators’ Multilateral Instrument 52-110, Audit Committees, indicates that every audit committee member must be financially literate and independent. Financial literacy includes the ability to: - Read and analyze, in a basic way, the financial statements and the notes to the financial statements.
- Understand accounting policies, and assess the appropriateness of judgements and estimates when these are discussed by management and the external auditor.
- Understand the company’s business, including related risks, and any unique features related to it and its operations that may impact the accounting policies.
To understand more about the audit committee requirements, please refer to MI 52-110 and the related Companion Policy 52-110CP.
How do I learn about IFRSs?
Education and Training - Build Your IFRS Learning Path – use the CICA's IFRS Learning Path Tool to help you assess your learning needs and develop your own individual learning path.
Standards Summaries (non-technical language) Financial Literacy Self-Assessment Tools Regulatory Information Related Publications |
